Tuesday, March 06, 2007

Required Reading: Bloomberg - Mutual Funds Get Busy Signal From Analysts Chasing Hedge Funds

So, when is it fair to say that the brokerages and their hedge fund clients are joined at the hip?

The only good side to this situation is that most of the sell-side analysts are just adding negative alpha anyway, so if there are fewer of them and they are mostly giving the fruit of their labors to hedge funds, ...? Will regular folks see better returns? Seriously, I would venture that the actively managed mutual funds worth owning do more of their own research than the rest of them, so they may not so impacted by the big brokerages giving favorable treatment to the hedge funds. So, when will the rest of the mutual funds start pulling their business and giving it to some brokerage which will appreciate it?

When will the clients become cognizant of this? You cannot be a clueless client!


Bloomberg.com: Exclusive

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