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4/
I.e. active funds can de-risk TSLA volatility by buying it at the current ~2% S&P 500 benchmark weight.
2% of 8 trillion dollars actively managed funds (~$140b+ if we exclude the ~10% who already have TSLA) is a lot of buying power, of over 20% of the TSLA float ...
3/
Collins maintained his "buy" rating and institutional clients who were "waiting for the post-S&P 500 inclusion dip" to ~$486 might now be forced to capitulate their quasi-short TSLA position.
If they buy after Q4 earnings next Wednesday they risk even bigger dispersion.
2/
Active funds underweight TSLA are now running out of CYA "excuses" of why they haven't bought TSLA yet, which caused them ~30 basis points under-performance to the S&P 500 this year alone.
We might see a "short squeeze" of active funds matching TSLA weight to the S&P 500.
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