I hope they don't spend much time looking for a Nestle or a Sanofi vs Microsoft etc. I would imagine that they know what works, following the trade winds around the markets. Maybe they will just buy into stocks that they know have a particular beta corelation to the market. Kind of hedge the market risk and go hard on an individual stock that always tracks with the market. Like if USA has a ball tearing night on the back of Chinese currency flow and GDP figures, then they know Australia is going to go up tomorrow and have been buying the SPI200s to get a slice of that. Maybe this one is saying "why don't we just go hard on BHP and 2 banks that always do better when such and such happens?"
I think they're listing BHD because they believe they have found an algorithm or pattern or correlation that works, so whether it is a country index via futures, or a specific stock that reacts the same way, they can do the same thing. In this way they don't actally need to visit the company- its already priced in. it just needs to be a big stock with deep liquidity that behaves in a predictable way to various situations. As long as they don't hold it they shouldn't get caught with company risk. The video said he is in and out in 26 hours (from recollection) so its unlikely that they wake up and discover their stock has gone all Quintus or Slater and Gordon on them overnight
Taking about the video he did also say that "most people talk about what we do, but they really have no idea". I am probably in the same camp. Maybe he'll explain what the plan is if it isn't the secret sauce
HML Price at posting:
$2.06 Sentiment: None Disclosure: Held
