itzhak ben david – Shamskm: A site to exchange knowledge and solutions

Hedge Funds Manipulate Stock Prices, New Research Shows

By Guest PostDecember 13, 2012Economyaugustin landier, dataset, evidence, financial contracts, findings, francesco franzoni, hedge fund data, hedge funds, investors, itzhak ben david, ohio state university, portfolio pumping, practice, price, rabih moussawi, sec, stock prices, university of lugano

COLUMBUS, Ohio – Some hedge funds manipulate stock prices at the end of the month to improve the returns that they report to their investors, a new study suggests.

In a study of 10 years of hedge fund data, researchers found evidence that some funds run up prices on specific stocks they hold on the last day of the month and quarter – especially the last 20 minutes of trading – before they report their returns for the period. But the prices usually fall back the next day, after the abnormally large returns have already been reported to investors. (more…)

Beliefs Drive Investors More than Preferences, Study Finds

COLUMBUS, Ohio – If experts thought they knew anything about individual investors, it was this: their emotions lead them to sell winning stocks too soon and hold on to losers too long.

But new research casts doubt on this widely held theory that individual investors’ decisions are driven mainly by their feelings toward losses and gains. In an innovative study, researchers found evidence that individual investors’ decisions are primarily motivated by their beliefs about a stock’s future. (more…)

Tag Archives: itzhak ben david

Hedge Funds Manipulate Stock Prices, New Research Shows

Beliefs Drive Investors More than Preferences, Study Finds