"I would like to think that every client who's buying a fund is buying for the right reason, but that would be naive, " he says.

WSJ: The Intelligent Investor: The Dividend-Fund Dilemma

As for that UBS tipping case, 12 of the defendants have settled or pleaded guilty, including Mitchel Guttenberg, the former institutional client manager of UBS's research department who was accused of selling upcoming downgrade tips to hedge fund clients in a scheme hatched with a friend at New York's Oyster Bar.

FORBES: Tipping The Shorts