Adam Back Says Active Funds May Keep Buying Strategy if It Is Removed From MSCI Index
JH Kim
Summary
- Adam Back said Strategy could see lower passive fund inflows if it is removed from the MSCI index.
- He said whether Strategy remains in the MSCI index could affect passive investment inflows.
- He added that active fund managers may continue buying Strategy shares regardless of its index inclusion.
Forecast Trend Report by Period
Adam Back said Strategy’s removal from an MSCI index could reduce inflows from passive investors, though active funds may continue buying the stock.
Cointelegraph reported on October 20 that Back said inclusion in the MSCI index could affect passive investment flows amid the possibility that Strategy may be removed.
If Strategy is excluded from the index, inflows from passive funds that track it could decline, he said.
Still, active fund managers seeking to outperform the benchmark may continue buying Strategy shares regardless of whether the company remains in the index.
JH Kim
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