MP1 1.15% $14.99 megaport limited

I don't think there is a way of determining their entry. Once a...

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    I don't think there is a way of determining their entry.

    Once a stock goes into an index, all sorts of things happen.
    An index hugger needs to gather a stake to the same degree of index inclusion. So, if MP1 makes up 5% of the target index, an index hugger needs to ensure the portfolio replicates the 5% index holding in the portfolio.
    The portfolio manager doesn't care too much about the entry price, because a profit or loss is taken on the day the stock gets included in the index.
    If the index hugging fund cant get enough stock, it has to borrow the stock, costing about 10bps as it used to be.

    If the fund is an active fund, it may decide to remain underweight in the portfolio. The contribution to the resulting profit or loss is the alpha generation active managers feed off.

    The point is that not all stock borrowers are necessarily shorters. And MP1 is heading for another index inclusion.

    And since the Opes Prime/Tricom debacle, I'm not sure that rehypothecation is available to banks and brokers.

 
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