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By Elliot Gulliver-Needham ‘Ponzi funds’ chasing a small number of stocks are inflating asset prices by as much as $500m (£391m) every day a new paper has revealed. Actively managed funds that hold very few stocks in their portfolios are pushing up the price of stocks above where they should be, the paper from Harvard Business School and Capital Fund Management found. This artificially strong performance attracts new customers, creating a “feedback look and a reallocation of wealth to early fund investors, which unravels once the price pressure reverts,” it said. These new investors chasing se…

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