Tchaikofsky Posted October 29, 2003 Report Posted October 29, 2003 The scandal that wasn't Despite its grand scale, Spitzer's mutual fund probe won't change much for individual investors. October 28, 2003: 4:16 PM EST By Malina Poshtova Zang, CNN/Money Staff Writer NEW YORK (CNN/Money) - Market timing, late trading, millions of dollars in average investors' money lost because of secret, sometimes illegal, arrangements between mutual funds, hedge funds and brokers. At first glance, the burgeoning investigation started by New York State Attorney General Elliot Spitzer has all the markings of the next big scandal on Wall Street, an encore to Spitzer's two-year probe into the too-close ties between stock anal cysts and investment bankers that resulted in a $1.4 billion settlement this spring. Since Spitzer first announced his probe nearly two months ago, the Securities and Exchange Commission and the Massachusetts Secretary of the Commonwealth William Galvin have joined in with probes of their own. But this time, investors are shrugging off the almost daily news of subpoenas, criminal and civil charges, and dismissals of fund managers, brokers, and hedge fund investors. "It's much ado about nothing in some respects," said Rick Applegate, a certified financial planner and president of First Commonwealth Financial Advisors in Indiana, Pa. . . . According to a CNN/Gallup poll conducted this week, investors are listening: 67 percent of respondents in the poll said the investigation would make no difference in their decision whether or not to invest in mutual funds. But 51 percent of respondents also said that they would probably move their money out of a fund that is under investigation.
Guest Posted October 29, 2003 Report Posted October 29, 2003 What exactly is wrong with market timing? I mean, most of us here do it all the time; is it illegal for the fun managers to do it? Regards, Vesselin
Tchaikofsky Posted October 29, 2003 Author Report Posted October 29, 2003 What exactly is wrong with market timing? I mean, most of us here do it all the time; is it illegal for the fun managers to do it? Regards, Vesselin I could be wrong about this, but I believe the issue is that the market timing was not available to all, only institutions/large clients.
Butterfield 8 Posted October 29, 2003 Report Posted October 29, 2003 It is my understanding that long-term retail investors lose gains, while hedge funds make them. Over time the long-term investor is disadvantaged.
Guest Posted October 30, 2003 Report Posted October 30, 2003 OK, here is an explanation of how it worked. IMO, "market timing" is a misnomer; what they actually did was more like "fund scalping". :shocked Regards, Vesselin
The brown one Posted October 30, 2003 Report Posted October 30, 2003 Love the euphemisms used by the US media-"fund-scalping" becomes "market timing". Suppose the analogy would be, filling in your football pools coupon after all the matches have been played!
Grand Poopercycle Posted October 30, 2003 Report Posted October 30, 2003 It was f%#@!* crooked-yet another disgrace for the 'asset management' industry -and ALL of it's participants, in- cluding those who act honestly(ahem).
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