Following yesterday’s post about the great website Stockchase.com in which I mentioned that a cynic might suspect an investment manager might give away free stock picks for dubious reasons… Here’s a conspiracy theorist’s short list of some strategies one might use:
- Pound the table on a stock because they already bought it and it’s been going down and they want to pump the price up before dumping it. A case of hot potato.
- Espouse staying away from a stock at all costs, recommend selling it if you have it. Why? So they can pick it up more cheaply.
- Scream the sky is falling – because they have many short positions.
On another note – if your fund manager got up there and starting giving away his top picks for free, wouldn’t you be inclined to ask for a discount? You might be paying an arm and a leg for active management, but viewers who don’t hold units of his/her fund are getting some of his/her best ideas for free. :)
Mind you, if you look at some of the calls as listed on stockchase.com that might be more in line with the value. Thank You! I’m here all week… try the fish. :)