Annual reconstitution of Russell’s U.S. indexes may help explain some of today's big...


Annual reconstitution of Russell’s U.S. indexes may help explain some of today's big movers among smallcaps; the event typically is viewed as a trading opportunity. Among Russell deletions: AMBT +22.4%, ACUR +18%, DM +14.7%, FALC -12.4%, CDZI +12.4%, HNR +10.9%, Among additions: INSM -18.7%, TXMD -13.5%, YRCW +10%. (full list)
Comments (5)
  • Philip Marlowe
    , contributor
    Comments (1580) | Send Message
     
    Why are deletions going up and additions falling?
    1 Jul 2013, 04:47 PM Reply Like
  • MWinMD
    , contributor
    Comments (3473) | Send Message
     
    INSM fell because they coincidentally released results of a clinical trial today that didn't meet the (IMO outsized) expectations of a lot of investors.

     

    Does anyone know if all of the Russell index fund buying had to be completed today, or do the funds typically buy in gradually over days or even weeks? If the latter, this one is especially a good buy, as I think the sell off was quite overdone. All the company was going for was noninferiority to the current "gold standard" drug (but with much improved convenience for patients, which should help with compliance). Statistically, they achieved that.

     

    They also have a potentially much bigger catalyst down the road in ARIKACE being used to treat NTM lung diseases.
    1 Jul 2013, 05:38 PM Reply Like
  • Guardian3981
    , contributor
    Comments (2509) | Send Message
     
    I was thinking the same thing.
    1 Jul 2013, 04:53 PM Reply Like
  • caddy311
    , contributor
    Comments (155) | Send Message
     
    don't get the whole reconstitution thing. $VRNG added - nothing happens. strange
    1 Jul 2013, 05:04 PM Reply Like
  • Bivus
    , contributor
    Comments (43) | Send Message
     
    This might be a case of searching for meaning in randomness. Maybe it's just unrelated.

     

    A bit like these news headlines: "The S&P went up 0.8% as 'this piece of statistics nobody cares about' came in 2 points above 'expectations nobody follows'."

     

    Often the only cause of "the S&P went up 0.8%" is that it just fluctuates, that's what it does for a living.
    1 Jul 2013, 06:01 PM Reply Like
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