Will IMU be removed from the ASX200 in June?, page-36

@Steini (reply not functioning again)

I have a slightly different take on this, and the short position.

I think its feasible (probable even) these index funds and insto's including IMU in their portfolio with ASX200 inclusion are the very ones who opened up the bulk of the short positions, as a delta hedge.

It's just good business, they're buying stocks that have often had a ball-tearing run north to garner inclusion, so are hedging the exposure to a significant pullback. Unfortunately, IMU case and point.

There's a lot of false info here on threads, particularly around shorters being evil and wanting the price to fall, which is simply untrue for 99% of the shorts imo, they are more likely long and just protecting downside, and will unwind the short when the right business catalyst arrives for a significant re-rate.

Should IMU be removed from the 200, they have the option (but not obligation) to sell their holding, in which case i'd wager we'd see large chunks of the open shorts unwound immediately also. Their IMU shares deep in the red (as many frustrated holders are here), but their short hedge in an offsetting profit.

Just my two cents. GLTAH