T
TheGreatBear
Guest
There's a certain type of fund called a life-cycle fund. I think there are ETFs traded for it.
In short, life-cycle funds attempt to adjust the asset allocation of a fund to suit the appetite of an investor as he ages.
This automatic adjustment will cause quite a few tax implications. So let's say it's a bull market,and you know that the fund will be adjusted soon, you can short the ETF and bet that the taxes will cause the Net asset value of the fund to drop.
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Window dressing: When it's performance report time, fund managers try to dress up their reports by selling stocks with large losses and buy highflying stocks. If so, could this explain a sudden buying surge in some hot stocks at certain periods when all badly performing funds try to window dress?
Just to jot down my thoughts for future research.
In short, life-cycle funds attempt to adjust the asset allocation of a fund to suit the appetite of an investor as he ages.
This automatic adjustment will cause quite a few tax implications. So let's say it's a bull market,and you know that the fund will be adjusted soon, you can short the ETF and bet that the taxes will cause the Net asset value of the fund to drop.
---
Window dressing: When it's performance report time, fund managers try to dress up their reports by selling stocks with large losses and buy highflying stocks. If so, could this explain a sudden buying surge in some hot stocks at certain periods when all badly performing funds try to window dress?
Just to jot down my thoughts for future research.
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