"Mutual funds don't generally have to sell profitable stocks to make up for losers. they just want to be seen holding winners when they reveal their holdings."
This matter was also discussed in the in today's (12/22/06)
WSJ in the Tracking the Numbers Column.
Also of interests is Cramer's view on Thestreet.com:
Hedge Fund Follies
Right now, hedge fund managers who have not performed so well this last year are trying to knock the market down as much as they can, because they are trying to close the gap between the performance of their funds and the performance of the Dow, Cramer explained.
They are selling stocks such as Apple (AAPL - news - Cramer's Take - Rating), Google (GOOG - news - Cramer's Take - Rating) and Goldman Sachs (GS - news - Cramer's Take - Rating), which he owns for his charitable trust, Action Alerts PLUS, he said.
As all of these stocks are "symbolic of the market," the managers are trying to knock them down by selling them cheaply, Cramer said. There's "tremendous pin action when this happens," and it "worries" the market, which is their goal, he went on to say.
Maybe this explains it all.
Bogtalk |
