Pork belly futures also saw fund short covering support and moved higher after initial carry-over losses and posting of contract lows, they said.

Chrysler definitely did a brilliant job of reinventing itself in the early 1980s, taking advantage of the fact that it operated tax-free until 1985 (because of carry-over losses) to streamline its operations and rework its design and manufacturing processes.

"People who buy into funds now get a built-in advantage," said Chris Wheaton, a partner and portfolio manager at Litman/Gregory Asset Management in Orinda, Calif. "They can invest in funds with carry-over losses that were incurred by other fund shareholders."