When the probe of the May 6 Flash Crash was heating up, it was announced that a mystery trader had initiated a large e-mini sell order. Most people assumed it was a swashbuckling hedge fund (hedge fund news). But it ended up being a mutual fund. That's right, a mutual fund (mutual fund news), specifically Waddell & Reed Financial, based in Kansas City.

The trades were initiated on behalf of its so-called flexible portfolio funds, which are overseen by Michael Avery--who is known for his macro hedge fund-like trading strategies. Some may be surprised that a mutual fund can accommodate a trading style that roams the world and cuts across all asset classes. Avery was an active hedger apparently, and the e-mini was his tool of choice. According to Reuters, some think that the funds using the e-mini contracts had stop-loss order programmed into its systems, which were then triggered by the broader market drop. 

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