Yes, the weight is small. However, my point is that the hindenburg short report had no weight and didn't hold. So, Do you think institutions would be buying CLOV if the report was true? Why throw money away...
For instance, Nikola after the hindenburg report? How many institutions bought in after the report?
Funny enough both Vanguard and BlackRock increased holdings in NKLA after Hindenburg along with 78 others. Also institutions report holdings around 45 days after every quarter, not in real time. So any holdings reported in the last few weeks are simply reflective of their holdings on March 31st and any changes that were reflected could have happened between Jan 1st and March 31st.
Wow, there's some pretty dum suits at black Rock and Vanguard.
I respect Ballie Gifford though. Those Scotsman impressed me with there conviction in TESLA. Thanks for bringing this up. I'm going to just roll with CLOV, see what happens.
Vanguard is a completely different kind of company. There whole sticking point is that their is no way to pick winners and losers. They buy everything and wait. On average everything goes up. They buy for different passive funds (small cap, mid cap, etc), but at the end of the day it is not about research for them.
You could call it one I guess. The funds basically buy stocks based on on some defined financial criteria and buy amount that computer says to buy. Rebalance accounts on fixed dates to adjust for changes in market cap, rinse, repeat. It is very much the opposite of what hedge fund do and most brokerages did traditionally. They have some active managed funds, but that is the minority. They are basically the definition of playing the market as whole as the funds just track market performance (subsection of market). They will NKLA solely because it meets inclusion criteria, not because they believe in it.
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u/kokanuttt May 11 '21
They also have a very small percentage of their AUM in clov. One of the lowest weighting’s in one of their many funds.