Extreme Makeover - BWM
BY GARY L. GASTINEAU AND CRAIG J. LAZZARA
Just about everyone agrees that it’s time to reinvent the mutual fund. The late trading that New York Attorney General Eliot Spitzer revealed in September 2003 probably netted all the perpetrators€”both identified and unidentified€” about $400 million before any necessary payoffs and expenses in 2001. And the performance cost of late trading to investors was probably at least twice what the bad guys took home. Spitzer also came down on market timers, most of whom operate within the law. Market timers made about $5 billion from investors in 2001 and cost funds at least the same amount in additional expenses.