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Beware Fund Managers Claiming Trading Prowess

Mark McQueen of Wellington Financial is patting himself on the back for staying long Goldman Sachs during the dark days of this summer. "Goldman was the trade of the year," he tells us, in a prime example of the bias that individuals always have towards their own holdings. The trade of the year? I don't think so: McQueen himself admits that he bought Goldman not at its lows but rather at $222 per share, which means that he's sitting on a nice but unspectacular 11% gain right now. But McQueen is looking not at Goldman's gains from where he bought it; rather, he's looking at the stock's gains from August 15 low of $164.64 per share. Since then, it's true, the stock is up 50%. But it's hardly unique in that respect, as McQueen seems to think:

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