Nobilis Health Corp (NRTSF)

[fatcat2]

" Unfortunately, individual portfolio managers are evaluated on their performance every quarter, due to the growing trend to benchmark funds against major market indexes such as the S&P 500. This evaluation process is unfortunate because if a portfolio manager is having a down quarter, he or she will drop underperforming stocks and buy into shares with trending momentum in hopes of achieving stability with the top indexes in the subsequent quarter. This all usually leads to increased trading costs, increased taxes and the probability that the fund is selling off shares at an inopportune time.

Hedge funds are infamous for putting quarterly demands on their managers. The pressure on these managers can lead to massive volatility in stocks and can hurt the individual investor who happens to be on the other side of a given trade.

Beware, though, because institutional investors can own a huge amount of shares, when an institution sells, the stock will sell off, impacting individual shareholders".