ByeByeJohnny
Active Member
If they had to tell them anything, which I highly doubt, they would tell them we bought this stock that had an better than average chance of going up because of likely index inclusion and made a 50% profit in a month. Now we are moving on to other hot stocks so we sold them.1)
For instance, they'd buy TSLA in one fund now and transfer the shares over to the index fund later. What do they tell the people in the first fund? "Sorry, but we just bought TSLA in your fund to give the shares over to people holding our other fund. You chose the wrong fund, bub." Hardly.
Or, fund owners have billions of dollars not in any fund lying around to speculate on TSLA before Q2 earnings were even announced. Of course, there is speculation, but there's probably more done with options or other derivatives than actual just buying stock.
And there are trillions of dollars on the sidelines so I doubt finding capital would be a problem. Again for a better than average likelihood of a short term profit.