Mets, Bloomberg and Editor discussed on Masters in Business


That's forty four billion dollar bid to acquire rival XP and what, would have been, the largest ever deal in the chip industry the aborted, takeover maybe the highest profile victim yet. The trade spat between China and the United States with every other relevant jurisdiction in, the world clearing the big months ago while trying to deny its decision had anything to do with trade tensions Qualcomm CEO Steve Mollenkopf seem to disagree Brought to move forward without annex p what the difficult one continued uncertainty overhanging such a large acquisition introduces heightened risk we weighed that risk against the likelihood of a change. In the, current geopolitical environment which we Now this, Bloomberg. Sports update just three days before baseball, trading deadline and the Mets were busy on. Friday before their game against Pittsburgh the Mets traded second base spent a struggle, Cabrera to Philadelphia for double a pitching prospect Franklin the beds also signed journeyman outfielder Austin Jackson and, designated Matt den Dekker for assignment and then there was a, game to play the Mets lost to the pirates five to four snapping, their winning streak at three David freeze drove in all five runs for Pittsburgh including game winning single in the bottom of. The ninth freeze win three for three. With two walks including a Homer off of Mets starter. Jason Vargas in the second inning, Vargas making his first start since June nineteenth allowed three, runs and four. Plus innings ten Peterson took the loss and relief Michael Conforto homered with two one in the first inning his fourteen th of the season the Yankees and Kansas City Royals were postponed by. Rain a Yankee Stadium the game will be made up as part of the day-night, doubleheader later Today I game at one zero five second game at seven oh. Five Luis Severino and see, savannah scheduled to pitch both ends of the double header the, Red. Sox beat the twins four three intending, tendons down five games ahead of the Yankees. In the American League east elsewhere in the American League Cleveland over Detroit eight, three was Toronto ten the White Sox five Texas over Houston eleven to two and Baltimore rounded Tampa, Bay fifteen to five National League max Scherzer eleven strikeouts Washington, over Miami nine to one Cincinnati Thompson sixty four the dodgers over the, Braves four to one and Saint Louis down the cubs five two two well the jets open training camp on Friday without. Rookie cornerback Sam darnold in the fold. The two sides remain at an impasse over guaranteed pay. And case darnold is cut by, the team and great news from giants camp has general, manager Dave Gettleman. Announced that his cancer is now in complete remission will the Bloomberg sports Update I'm Tom Rogers I'm Barry ritholtz you're listening to masters in. Business on Bloomberg radio my extra special guests this week. Is rob are not he is the founder and chairman of research affiliates which manages assets using their strategies of over. Two hundred billion dollars the firm is, located. In Newport Beach California let's. Talk about a study you did way back when looking at the s. and, p. five hundred index which theoretically is a passive and we'll put a footnote on exactly what passive means you found from nineteen eighty. Nine to twenty seventeen the last year there was a full year of. Data available stocks editor the index underperform those that were kicked out by an average of twenty three percentage points over. The ensuing twelve months that's not a. Bad, gap in return. Oh my goodness It's amazing so so what are the implications of this and what does this mean about the stock picking acumen of the editors on the committee of. The SNP index who select the stocks that go into it I. Don't fault the index committee for the way they make. Choices they're under their clients are the people who licensed the index right and the people who licensed the index want. The index to include all the names, that. Are hot beloved and our. Embarrassing not to have in the index if there's a stock that has been, brutalized unloved dirt cheap and nobody wants said it's embarrassing to have it in the index of course they're gonna take those out now. What happens is two things firstly they announced a change and they announced. The date the change will take effect that gives the index funds a grace period in which to trade where they're. Going to move those stock prices and. Those, stocks will Still be in the index so they won't create a performance drag their everybody please front runner trades well there's a. Hedge fund community that does exactly that so, the, trades are, made the positions built, and then given over to the index funds. On the, effective date. Preferably atr near. The close the stocks added when. You, compare them with the discretionary deletions deletions that aren't. Related to corporate actions outperformed by nearly nine percent during that grace period so in index funds say we don't move stock prices with our trading that's that's rubbish They let other. People move it on their behalf and they could say oh look we haven't moved this well there's that and then there's also the simple fact that the ads beat the discretionary deletions by nine percent during a period of days well that's a big move so you. Also have. A part of that twenty three percent return, difference, in the. Subsequent year is simply mean reversion taking the price impact of the index funds. Back out and. Part of it is. Quite, simply the stocks editor extravagantly expensive on average and..

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