FYI-(In case you DID NOT know) In addition to the index funds that bought about 200,000 shares in June quarter, the following financial institutions bought new or additional shares in june quarter Black Rock Inst'l Trust 115,642 (now own 148,894 State St Global Advisors 48,220 Vanguard Group 35,276 (now own 43,843) Bridgeway Capital Mgt 41,500 M3F 38,921 BNY Mellon Mgt 7,471 (now own 26,771) Northern Trust Global 18,964 Calif Retirement System 7700 (now own 15,045 Chas Schwab Inv Mgt 12,300 Black Rock Inv Mgt 9,259 Where did stock come from...not mm Doubt that much of this is because BERK was added to Russell (these are not index funds) Why did some add to previous positions (not sell if they thought it's fully priced at BV?) Did (would they) buy for an expected dividend? Thoughts or comments??
I suspect the vast majority of these purchases are indeed because of it being added to the Russell. Some of them may indeed be index funds, but in any case, most will be closet indexers. The only one on the list that likely actually valued the stock is M3F. They are a small fund specializing in banking stocks. The rest of these almost certainly didn't do anything more than see the name on the list and put a buy order in. In terms of them not selling if they think it's fairly priced, I think you give them too much credit. Believe me, a massive fund with billions isn't spending the time to think about and value a small position in a small community bank. In my view, they didn't buy for any reason other than the Russell addition.
I respect your opinion and maybe you are right...or partially right. I find it hard to believe that some big name investment firms just buy with little or no research regardless of how small relative to there total investments, or just because a stock is added to the Russell. B T W do you know what the criteria was/is to be added to the Russell (I don't). I guess fact that all this activity is around or after it was added says something as well (goes to your point).Maybe wishful thinking but I question whether Black Rock added 115,000 shares, or some others, bought because of adding it to Russell (even though BR already had over 30,000 shares. I'm pretty sure MM kid knows the CEO's of BR, and a few others as well