In today’s briefing:
- S&P500 Index Rebalance: One-Way Trade of US$30bn
- Kakao Pay Shorting Entry Point: June 9 KOSPI 200 or June 17 FTSE?
- Diamond Hill Small-Mid Cap Fund Q1 2022 Market Commentary
S&P500 Index Rebalance: One-Way Trade of US$30bn
- There are quite a few changes for stocks across the S&P 500 (SPX INDEX), MidCap 400 Index and SmallCap 600 Index that will result in a one-way trade of US$30bn.
- There are adds/deletes that have over 5 days of ADV to trade from passive funds, plus many stocks that have over +/-1 day of ADV from other changes.
- The largest impact of passive buying will be on Keurig Dr Pepper Inc (KDP US), On Semiconductor (ON US) and VICI Properties Inc (VICI US).
Kakao Pay Shorting Entry Point: June 9 KOSPI 200 or June 17 FTSE?
- As for the FTSE rebalancing, when basket trading was not feasible, the individual trading setup of large-cap additions had a significantly lower win rate.
- Local tutes use the FTSE rebalancing as a selling opportunity. And this trading pattern of local tutes was particularly prominent in large-cap additions.
- I suggest avoiding flow trading for the additions this time. Kakao Pay? We should aim at the June 9 KOSPI 200 instead of the June 17 FTSE for shorting entry.
Diamond Hill Small-Mid Cap Fund Q1 2022 Market Commentary
- Diamond Hill invests on behalf of clients through a shared commitment to its valuation-driven investment principles, long-term perspective, capacity discipline and client alignment.
- Amid a rocky market quarter overall, our portfolio’s negative returns still outpaced the Russell 2500 Index by a healthy margin in Q1.
- From current levels, equity market returns over the next five years are likely to be below historical averages.
- We believe we can achieve better-than-market returns over the next five years through active portfolio management.
Before it’s here, it’s on Smartkarma
