Brian Freitas

@pickafund $1942.HK

@tradingarb excuse my ignorance Dear Brian, and this is...?

😂🤣

Go All Blacks!

@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."

@dbseymour do tell us more cos i aint giving a cent of my money to the Herald

This is chilling. He shouldn’t stop his blog. Instead, Robert should take a leaf from Andy Dufresne and write two blogs a week. nzherald.co.nz/business/media…

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

@tradingarb is that your lawn? :} nice home work

Rebalancing the lawn

There are few places to hide - and most of those are markets/indices with smaller flow and are liquidity constrained. Link here on @smartkarma🔐: smartkarma.com/insights/index…

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).

@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.

@smartkarma @tradingarb So the index price will slightly drop on 6th as this portion shall be considered at zero price?

🧵Smartkarma #eventdriven #threadoftheday ITC Hotels: Index Implications of Demerger from ITC Ltd (ITC IN) — Brian Freitas @tradingarb -- $ITC.IN 1/

@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.

@tradingarb in the last 45 minutes on Friday huge quantity got traded in RIL ITC , INFY ,tcs , levers . Any idea if there was any rebalancing on that day or any idea what has happened ? Any updates will be appreciated

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

$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: smartkarma.com/insights/dow-j…

@Headder86 @smartkarma yes, that explains it

@smartkarma @tradingarb That explains the 20X volume today ? I was thinking someone knew something & wanted to exit fast.

🧵Smartkarma #eventdriven #threadoftheday Swire Properties (1972 HK): Buyback to Offset Passive Selling — Brian Freitas @tradingarb -- $1972.HK 1/

@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.

@tradingarb So.. taking something like the planned $para tender, which is at a big premium to the undisturbed price, the index is likely to leak a little bit? Underperforming vs, if it had tendered?

Do ETFs exercise rights offerings?

@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

@tradingarb Thanks! Would they tender into a tender offer, too, because that makes the number of shares go down?

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

@tradingarb help me out?

@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.

Any thoughts @tradingarb? What went as per your expectations and what did not? "HDFC BANK: MSCI - WILL MAINTAIN HDFC BANK IN MSCI INDEXES WITH AN INCREASE IN FOREIGN INCLUSION FACTOR (FIF) FROM 0.37 TO 0.56 AS OF CLOSE OF AUG 30, 2024 || MSCI - WILL APPLY AN ADJUSTMENT FACTOR OF 0.75 ALONG WITH THE AUGUST 2024 INDEX REVIEW FOR HDFC BANK"

@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.

@tradingarb Hi Brian, now that the FPI holding in HDFC Bank is clearly below the threshold required by MSCI, how do assess the likelihood of its changing the Bank's adjustment factor? Can MSCI still be apprehensive and decide to do nothing?

HDFC Bank (HDFCB IN): Mutual Funds Buying; Who is Selling? open.substack.com/pub/indexsolut… A free to read post on the likelihood of passive buying in $HDBK.NS in August.