Hedge Funds Manipulate Stock Prices, New Research Shows
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…)