Cornerstone Research has investigated issues relating to market timing of mutual funds and insurance products.
Various definitions for “market timing” exist, but it generally is defined as a practice in which an entity makes frequent and rapid in-and-out trades in a mutual fund with the aim of exploiting temporary inefficiencies in the pricing of the mutual fund’s shares. Mutual fund market timing can also include “late trading” in which fund share purchases are made after the close of the market but are processed at the market close prices.
Cornerstone Research has investigated issues relating to market timing of mutual funds and insurance products. Cornerstone Research and affiliated experts have assisted mutual funds and insurance companies in internal investigations, negotiations with the SEC and state attorneys general, the distribution of settlement funds, and shareholder class actions.
Working with finance experts, we have developed approaches to identify frequent traders, stale price traders, and late traders that allow our clients to understand how the behaviors of short-term traders may affect long-term investors.