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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: William H Huebl who wrote (13985)	2/9/1998 9:09:00 AM
From: James F. Hopkins	Read Replies (2) \| Respond to of 94695

HI Bill; Market up today on open ; Michel Burke can explain funds better than I can, he use to be a fund manager. I may track more than him at this time,but he knows the mechanics better than I do. -------------------- Now here is something that can't be proven, but has enough cercumstanual evidence that I belive it. It does not apply to all funds, or even one at all times, but happens a lot I'm sure. --------------------- The fudge factor: Some days funds get a lot of inflow, hot managers arrange to have their portfolio cut off time ( NAV ) calculated on the high side if inflow is much higher that redemptions, and have a way of skewing the NAV lower if the redemptions are high..it all balances out and in the long run but can add a little hidden expense to the market timers. This I doubt is done for any personal gain except to enhance the funds prefromence over time. The amount on any given day may be very small, but it adds over a year. I call it the fudge factor. They will never admit to this, and there is no way to nail them on it, and any way it does not really hurt the longer term regular investor in the fund, in fact it helps him. Jim P.S. Dollar also gained ground over the weekend.. Euorpe up, Asia mostly up..and we are headed up again.