Redemption fees have some merit as they are often designed to stop traders from moving in and out of the fund attempting to make a quick speculation profit.

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As funds fall out of her momentum rankings, she rotates--or "upgrades"--into new market leaders, but tends not to hold funds for less than six months to avoid redemption fees.

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Risks to our thesis include financial market weakness, an inability to meet relevant investment benchmarks, redemption risk and lower-than-expected performance fees.

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