RE:RE:Hmmj horizon and VFF CEO sell offHey Lazersharp
Unless you are able to see the number shares O/S on HMMJ and the number of shares owned in VFF, you really have no idea what the manager of the fund is doing. If investors buy HMMJ, MM's create units and the manager allocates accordingly. Unless you know that the manager allocates pro rata based on a model, you really have no idea what is going on inside the fund.
If cash rushes into HMMJ, units are created, the manager may not be allocating to VFF and its weight will fall without the manager selling one share. I suspect you will notice the % weight changes for all or most of the holdings. MW moves from .84 to .79 are not material if due to cash flow + or -. The same holds true for ETF cash out flows, you will note that one week ago, HMMJ had a mkt cap of $850M, now it is $796M, the manager has to sell shares of all holdings and what you do not know is the % sold in each.
Let me know if there is a material change in mkt weight, like .80% to .40% or 0%. That is meaningful as is a move from .79% to 1.5%.