BRN ASX300 rebalancing, page-82

Unless the fund is an index tracker, all the inclusion in the ASX300 means is a fund manager MAY buy shares in a company listed in the index. Even the index trackers have to buy in an amount weighted to the company's MC as a percentage of the overall index MC. So if the fund has a billion dollars in capital, and BRN makes up 0.1% of the ASX300 index, that means they only need to buy ~$1 million worth of shares. That's not a huge amount. And if the company experiences a speculative pull back that exceeds the overall index movement, then the fund has to sell out as well to rebalance the fund.

It was pretty clear the recent run up into the 70s was highly speculative - a good fund manager that doesn't have to blindly buy whatever is in the ASX 300 would exercise a bit of patience and wait for the inevitable pull back and a bit of data to support a buy decision.

A market cap of circa 1 Billion is pretty good for BRN at the moment. The quarterly may change this if some decent income is lodged.