Herd Mentality: Mutual Fund Managers Flock Together

As we near the end of 2013, if a mutual fund manager does not have successful Company X - be it Netflix or anything else that has done well this year - the owners of the mutual fund shares are going to have a lot of questions. As a result of that competitive pressure, the mutual fund manager may buy Company X - at its all-time high, after others are quite profitable in it - just to show it in the portfolio. read more

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