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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: MCsweet who wrote (53881)	5/8/2014 10:41:23 PM
From: Elroy	Respond to of 78753

I don't think the Russell selling has fully kicked in. Yes, this index adjustment thing is hard to measure. One would think the index funds (since they are supposed to mimic the index) themselves wouldn't take an actual position until the day of the expulsion, so why do the shares move so violently on the announcement? I guess it's the hedge funds trying to front run the index funds. And yes, it's hard to know when that move has played itself out. In the reports I've read the index funds hold a significant amount of days of trading for some of the BDCs since some of the BDCs are fairly illiquid.