The game has changed in Australian equity deals – just look at Chemist Warehouse.
Deals are now heavily reliant on liquidity, index weights and active fund managers trying to capitalise on late buying from indiscriminate benchmark tracking funds. The active funds buy shares knowing index funds will be forced to buy later, once a stock’s weighting is increased.
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Anthony Macdonald is a Chanticleer columnist. He is a former Street Talk co-editor and has 10 years' experience as a business journalist and worked at PwC, auditing and advising financial services companies. Connect with Anthony on Twitter. Email Anthony at a.macdonald@afr.com
