It's not just 'after hours' traders rigging the race

Wed Oct 1, 2003



Are all the mutual fund timers exploiting legal and moral loopholes?

When Janus began its' public relations counter-offensive in the wake of fallout over the Canary Capital mutual fund timing scandal, some interesting facts came to light. Irked by Morningstar's decision to drop buy recommendations on all Janus funds, the group's CEO Mark Whiston fired back in a letter. In addition to pledging to make Janus investors whole if they lost any capital, he tried to put the matter in perspective by pointing out that mutual fund timers represented only half a percent of assets under management.

Half a percent may not sound like a lot, but considering the fund group has $150 billion by the latest estimates - that's $750 million in mutual fund timing strategies being spearheaded by hedge fund shops at Janus alone. And such a sum certainly isn't insignificant to Janus, which has seen its overall...

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