Peregrine Diamonds Ltd. PGDIF

RE: RE: Smallcap index

[Durkastan]

I mentioned that SOME funds might buy in anticipation.

I work at a large managed fund. We have an indexed TSX Completion index portfolio. We will not be adding the new securities until rebalancing day. Neither will most other large, managed index funds, for the reasons I stated in my last post.

Of course SOME funds buy in anticipation, looking to make a buck off of the much, much larger flows that come from index buying. Those funds don't have to follow "index rebalancing" guidelines - for example, hedge funds.

However, when it comes to index funds, they buy on the rebalancing day, or at the most the day before. Trust me.