Hedge Fund returns spike significantly during the month of December, raising the overall performance and fees managers receive, according to BusinessWeek.
A recent study by researchers at
By holding back returns from previous months and booking them in December, fund managers can boost their numbers and strengthen their bonuses.
“If managers exceed yearly expectations, they get paid more,” said Narayan Naik, a finance professor at the
Last-minute stock purchases in the final days of the month, especially in companies they already own shares of, can raise demand and the price, the study found.
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