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I’m curious what happens in that case, then - let’s say hypothetically that SPY has enough cash come into the fund that they’ll cross that threshold if they fol
by roughly 5y ago
I’m curious what happens in that case, then - let’s say hypothetically that SPY has enough cash come into the fund that they’ll cross that threshold if they follow their stated investment policy (“buy the S&P”) - what’s the move, then?
- lalaland1125 5y agoBuy futures or other assets that will mimic the price. The stated investment goal isn't "buy the S&P", it's "match the price of the S&P".
- roughly 5y agoHow far can you go with that strategy? The derivative assets aren’t going to fully move with the price, and can have much higher volatility than the asset you’re trying to avoid buying.
- rosndo 5y agoNo, you aren’t going to have higher volatility like this than you would buy triggering a poison pill like discussed in the article.
- rosndo 5y agoThey will talk to Twitter board and make an agreement with them to not trigger the poison pill, and continue buying shares. Such an agreement would be reached incredibly quickly, there would be no need for stopgap measures. From the article: > Under the new structure, if any person or group acquires beneficial ownership of at least 15% of Twitter’s outstanding common stock without the board’s approval