Brian Freitas

Index arb/ Delta One trader in a past life. Now chauffeur to the kids, dog walker and gardener. I also look at all things related to Asia index rebalances.

[Brian Freitas @tradingarb]

@pickafund $1942.HK

[Brian Freitas @tradingarb]

😂🤣

[Brian Freitas @tradingarb]

Go All Blacks!

[Brian Freitas @tradingarb]

@kitcalledkat @dbseymour This is his blog: Down to Earth Kiwi | Economics Blog

And this is possibly what rubbed some (maybe a lot!) people the wrong way: "We exposed the cosy inbred club made up of people promoted way beyond their abilities that is running NZ, both in the public and private spheres."

[Brian Freitas @tradingarb]

@pickafund Yes, my lawn. Not started doing other peoples lawns yet :)

[Brian Freitas @tradingarb]

Rebalancing the lawn

[Brian Freitas @tradingarb]

There are few places to hide - and most of those are markets/indices with smaller flow and are liquidity constrained.

Link here on @smartkarma🔐: https://t.co/vrIFcYej6A

[Brian Freitas @tradingarb]

The index rebalance strategy has been in the news lately due to losses at large multimanager hedge funds. We take a look at the weekly returns for Asia using forecast changes and announced changes for the indices we cover (60+ indices across Asia Pac).

[Brian Freitas @tradingarb]

@igrad007 @smartkarma No, none of the index prices will drop due to the demerger.
Depending on the index, either a price adjustment factor will be applied to $ITC.NS or the ITC Hotels price will be difference in the cum- and ex- prices of ITC Ltd.

[Brian Freitas @tradingarb]

@sandeep_ise The FTSE rebalance was traded at the close on Friday, so could be linked to that. Plus the Sensex rebalance. Plus rebalances on other smaller indexes.

[Brian Freitas @tradingarb]

and no, the index will not be renamed the 'Jones Industrial Average' after $DOW has been kicked out.

[Brian Freitas @tradingarb]

$NVDIA and $SHW will replace $INTC and $DOW in the Dow Jones Industrial Average.

Impact varies across stocks, and some will move a lot more than others when passive trackers trade them.

For @smartkarma subs: https://t.co/GWIllu21jU

[Brian Freitas @tradingarb]

@Headder86 @smartkarma yes, that explains it

[Brian Freitas @tradingarb]

@stoked_on_waves If the stock drops post the tender, then yes, the index will underperform vs if it had tendered the stock.
But it is near impossible for the index provider to know in advance what percentage of shares will be tendered in the offer.

[Brian Freitas @tradingarb]

@stoked_on_waves They would not. Index providers change the number of shares post the results of the tender offer being announced and that depends on the number of shares tendered.
So ETFs would normally sell in the market after the tender offer results are out. Or they could tender if still open

[Brian Freitas @tradingarb]

@stoked_on_waves The ETFs would exercise in the money rights since the index will increase the number of shares for the stock.

[Brian Freitas @tradingarb]

@anilbajpai Given the large size to trade, the increase in weight will take place in 2 steps: half at the end of August and the other half in November.
Could see some positioning come off today.

[Brian Freitas @tradingarb]

@anilbajpai Hi Anil - MSCI avoids making discretionary judgements. It’s strictly by the book.
With foreign room higher than 25%, the upweight should get done in August.

[Brian Freitas @tradingarb]

HDFC Bank (HDFCB IN): Mutual Funds Buying; Who is Selling? https://t.co/oI2u9Ltisx

A free to read post on the likelihood of passive buying in $HDBK.NS in August.

[BuyLowSellHigh @BLSHigh]

$gyg Guzman y Gomez summary video of ipo pump another accurate assessment