Hedge Fund “Sell Out”

Historically, the month of September tends to be the worst month of the year for investing. Here’s why:

Hedge Funds are largely compensated based upon their investment returns. If a hedge fund is having a good year and showing a nice profit. The hedge fund manager may decide to lock in their gains before year end. This way they know that they will receive a nice bonus check at year end. Basically, they just sell out everything and sit out the rest of the year. (more…)