Controlling Hot Money

Posted: 26 Jan 2012

See all articles by Bob Pozen

Bob Pozen

Harvard University - Business School (HBS)

Date Written: December 16, 2011

Abstract

The manager of the Japan Equities Fund is faced with an increase in "hot money" moving quickly in and out of the Fund. This short term trading is an attempt to take advantage of the difference between the closing times of the Tokyo and New York Stock Exchanges. The CFO of the fund manager considers the various strategies available to limit such short term trading, which will be presented soon to the Fund's board of directors.

Learning Objective: To educate students about how international stock funds price their securities across different time zones and deal with market timing by fund shareholders.

Suggested Citation

Pozen, Bob, Controlling Hot Money (December 16, 2011). Harvard Business School General Management Unit Case No. 311-022, Available at SSRN: https://ssrn.com/abstract=1991894

Bob Pozen (Contact Author)

Harvard University - Business School (HBS) ( email )

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