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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: el_gaviero who wrote (1192)	10/1/2003 4:43:05 PM
From: bozwood	Read Replies (1) \| Respond to of 110194

Point taken. Sorry about the tone. I agree with much of what you say in general, but not all of the details. For instance, there are likely many funds at Opp. that own CREE. Each manager will have the discretion to buy or sell. Maybe they talk to each other and maybe they don't, but you would be surprised how often one fund is buying and one is selling (within the same fund shop). In addition "mutual fund guys" often own stocks for such reasons that are not rational like being long beta, etc. So, they may not run for the exits as quickly as you think (redemptions are a different matter), but rather hold on to the stocks. Finally, most mutual fund managers are not generally given the discretion to hold cash, so they will be buying something else. This could cause rotation more than a tanking of the market. What you conclude could happen, but I would contend that it is going to be a bunch of independent decisions (for the most part) by fund managers rather than some implicit agreement between them.