Geert Rouwenhorst and Will Goetzmann Comment on Spitzer Mutual Fund Probe

As New York Attorney General Eliot Spitzer launched an investigation into the fraudulent after-market trading practices of mutual fund firms, Professors K. Geert Rouwenhorst and William Goetzmann were on the forefront of those commenting on the probe. Rouwenhorst provided perspective on TheStreet.com (9/4) saying, "Our research found the [late trading] strategy earns you 30% a year vs. long-term buy-and-hold fund investors and cuts the risk in half." Rouwenhorst also provided comment to CNNMoney (9/4), Barron's (9/8), and Investor's Business Daily (9/9). Regarding the mutual fund probe, Goetzmann told the Philadelphia Inquirer (9/6) that the timing of international markets has an immediate and costly impact on mutual fund investors. "If you sell a share at a price that's too cheap, it comes right out of the pockets of current shareholders." Goetzmann was also quoted on the subject in The New York Times (9/7). Their research paper, "Day Trading International Mutual Funds: Evidence and Policy Solutions," which established fair value pricing of mutual funds, was cited in the news coverage.