GameStop saga: How Wall Street gains from populist trading movement
GameStop saga: How Wall Street gains from populist trading movement
Shares of GameStop and other heavily shorted stocks such as AMC Entertainment and BlackBerry shot up this week as they were pushed by traders on Reddit and other social media platforms, although they fell back on Thursday.
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UPDATED: January 29, 2021 16:44 IST
Outside a GameStop store people line up to purchase a Sony PS5 gaming console. (Photo: Reuters)
Steep gains in shares of GameStop Corp and other stocks this week have been described as populist market revolts. But among those out ahead are some of Wall Street’s largest asset managers, which can realize gains both from their share stakes and from lending out stocks to short sellers.
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We crunched the numbers. The upshot: The returns may not be worth the tax savings.
Some mutual funds may claim to be tax efficient on average, but once the higher annual fees are paid, you as an investor might be disappointed. Photo: Daniel Acker/Bloomberg News By Derek Horstmeyer Jan. 10, 2021 6:43 pm ET
Investors whose top concern is minimizing taxes often turn to “tax managed” or “tax efficient” mutual funds. But the returns they get may not be worth the tax savings.
In recent research, we found that tax-managed funds underperformed similar funds that weren’t tax managed by about 0.09 percentage point a year on average, over the 10 years ended Dec. 1, 2020. That is largely due to the higher fees the tax-managed funds carry, but in many cases their managers also performed significantly worse than their peers at the other funds.
If the true spirit of the holiday season is about giving, annual toy drives help contributors imagine the joy and delight of a child s eyes light up upon receiving an unexpected gift.
This year especially, nonprofit organizations say the need is even greater as more families are isolated, sick or financially challenged by the COVID-19 pandemic. We know a lot of families who are struggling at this time of year, and money is tighter than it s ever been, said Kim Mullins, owner of The Tutoring Club in St. Johns.
Mullins said that its the first year her educational assistance organization has sponsored a toy drive, in cooperation with the Marine s Toys for Tots holiday campaign.
I'm getting emails in the middles of the night, messages on our Facebook page, letters at the office of people asking for help. It's truly moving," CEO Melissa Nelson said.