"Funds will have rules to stop out even if they believe the new guy can turn things around, it's not their money to gamble with."
Never heard of that one, unless they are heavily geared, which few are. The only one I have seen is a cap on the percentage of the fund in any one stock, which might force them to sell off if one particular stock goes up a lot. Gambling with other people's money is their core business.
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