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But companies haven't traditionally been good market timers.
They are too complicated for casual market timers.
Still, the research also shows how we might become better market timers.
The effect is to transfer money from other investors in the fund to the market timers.
Until late 2001, PBHG did not try to discourage market timers.
The relative complacency is particularly evident among market timers who focus on the Nasdaq market.
A recent study found that hedge fund investors, on average, may be even worse market timers.
But executives at the smaller fund companies say they are providing a service to market timers.
Invesco permitted 66 different market timers to trade in its funds.
Brokers and insurers earned increased fees from big market timers, the regulators say.
But the policy was ignored, said regulators, and some market timers were allowed to continue trading.
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