HGH - Heartland Group Holdings

[SuperMario]

Guy on other channel says it's rebalance day - HGH will exit the FTSE small cap index today at mkt close

Any tactics suggestions to try take advantage of this?

[Basil]

Watch the final 15 minutes of the day's trade from 4.45 - 5.00 p.m. and see what the match price is going to be.  If you like what you see the match price is likely to be, lodge a bid in the last 5-10 minutes of trade.

[SuperMario]

Watch the final 15 minutes of the day's trade from 4.45 - 5.00 p.m. and see what the match price is going to be.  If you like what you see the match price is likely to be, lodge a bid in the last 5-10 minutes of trade.

Looks like $1.23?

[SuperMario]

20 mil on the sell side, 7 mil on the buy side? What happens if not enough demand at match price?

[BlackPeter]

20 mil on the sell side, 7 mil on the buy side? What happens if not enough demand at match price?

Well, I recon this means not everything will be sold ...

Having said that - I see 19,3m on the buy side - and this does nto include the $1.23 bids, so I assume the auction is balanced.

[SuperMario]

Looks like it's all gone at $1.23

[BlackPeter]

Well, I recon this means not everything will be sold ...

Having said that - I see 19,3m on the buy side - and this does nto include the $1.23 bids, so I assume the auction is balanced.

YEP - here we go: Match Price 1.23, Match volume 20.36m.

But I recon now its too late ;

[Basil]

I bought some more at $1.23

[winner (n)]

I bought some more at $1.23

Back to $1.30 on Monday ....you laughing all way to bank eh

[Basil]

Can't help wondering if the weakness in the share price in recent weeks is all related to the FTSE index exit event that culminated in the match process this afternoon?  These index changes are announced weeks ahead of time and I wonder if the earlier selling pressure which drove it down to the recent low was a result of the initial announcement of the planned exit and sellers front running that, or was it perhaps weak hands disappointed with the half year number reported?  Hard to say which but I am happy to take a dogged approach holding for better times ahead whilst also keeping plenty of dry powder in reserve to support any possible future capital raise.

[SuperMario]

It was interesting, it looked like there was 17.6mil at $1.23, 1.7mil at $1.20, and 1mil at $1.15 for sale leading up to the 5pm 20mil at $1.23 that happened. I wonder what was going on with the lower two.

[Fiordland Moose]

It was interesting, it looked like there was 17.6mil at $1.23, 1.7mil at $1.20, and 1mil at $1.15 for sale leading up to the 5pm 20mil at $1.23 that happened. I wonder what was going on with the lower two.

Sellers doing a reverse book build of their position posting tranches of shares for sale at various prices w/ attendant volume. Index trackers need to get out but spread the position across multiple price points. Buyers doing the same thing on the other side. Final price determined by a venn diagram type algorithm that will move the most stock at one price

[winner (n)]

Days like today just highlights the stupidity of the concept of indices ....esp when components keep changing .....stars in losers out ...like buying high and selling low

Whatever those who take the opportunities that this stupidity inevitably create that are to be applauded

[winner (n)]

In a paper on the stupidity of índices changing I noted this ' in the year after a change in the S&P 500 Index, deletions beat additions by 22%, on average. '

Indices per se buy high and sell low ...... so don't dismiss any stock that's been kicked out of an index ....the damage has often been done

[BlackPeter]

Days like today just highlights the stupidity of the concept of indices ....esp when components keep changing .....stars in losers out ...like buying high and selling low

Whatever those who take the opportunities that this stupidity inevitably create that are to be applauded

You are right, Index funds can be (and are) played so easily (given that their buy and sell decisions are both involuntary (they have to ...) and as well announced ahead of the time.

On the other hand - in the long run do index funds (despite this weakness) outperform most (nearly all?) actively managed funds, and I suppose this includes as well most private portfolios.

Could be a topic for an interesting discussion, wondering whether it might deserve a special thread?