Market timers now have a place to find out which funds are most vulnerable to arbitrage. That development may not be good news for fund groups, but thanks to the Web, it is not one that they can stop. Until now, many market timers have relied on chat rooms and message boards to trade information about funds that are vulnerable to timing.
Recently, however, MutualFundFairValue.com
launched. While the site purports to help fund shareholders avoid funds that are the target of timers, it can also be used by timers to identify funds that are good targets for their trading strategy.
The site lists 25 mutual funds that claims are "most vulnerable to mutual fund marketing strategies" and recommends that "long-term investors should avoid these funds."
Fair Value Research
(FVR), a Boston-based research and consulting company operates the site. The firm describes itself as being "specialized in mutual fund fair value research and mutual fund market-timing analysis."
Among the services offered by FVR are fair pricing tools for fund management firms.
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