40% hair cut that was well broadcast for daysFor the past 2 weeks HOU management, forum participants here have all warned buyers the impication of buying HOU at prices above NAV. If you are still perplexed why it drops 40% today, it is clearly you are not ready to trade index products like HOU.
Management change to NOT announcing when and what to roll can be both a positive and negative. Positive as in traders (the real ones) can not front run against Horizons's flow. On the negative side, we now have an uncontrolled element of Horizon management trading the contango / backwardation in the pricing.
Overall I believe the roll change is going to be net positive in terms "wiping investors out yet again in short term", but at the expense of quite difficult to "realistically" track the real daily % move. If anything it makes holding it long term a even bigger losing propostion, not that one should hold it long term to begin with.