The fund industry scandal has cast market timing, and frequent trading as bad news for mutual fund investors. But when the "timers" are actually fund portfolio managers whose dizzying spinning in and out of securities is eagerly embraced as a part of their core investment strategy, is the news still bad for investors, or is outperformance the result?

While retail fund investors may be discouraged, penalized or even banished from flipping in and out of funds to time the market, there is a small faction of fund managers who feast on a steady diet of turnovers. These opportunists continually seek thrills and deals by skipping in and out of both equity and fixed-income securities.

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