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New research featured in Bloomberg challenges the notion that retail investors are the primary drivers of massive sell-offs during market crises. The study reveals that mutual funds, particularly those owning other funds, are the most prone to panic selling during turbulent times. Nolwenn Allaire, a PhD candidate in Finance at Columbia Business School, is highlighted for her role in the analysis, which examined the market dynamics of the 2020 Covid crisis. The findings offer fresh insights into how fund ownership structures can amplify market stress. Read more for in-depth details.
