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There's a trade hedge funds can make that's the exact opposite of the expected rebalance from the passive funds. The expected size of that trade and the passive
by ThrustVectoring 6y ago
There's a trade hedge funds can make that's the exact opposite of the expected rebalance from the passive funds. The expected size of that trade and the passive funds trade isn't something you can predict in advance. If too many hedge funds try to front-run the rebalance and buy to cover into the expected selloff, it could go the exact opposite way.
It's really hard to make money in the stock market from extremely public information.