Money Stuff: The Podcast · Friday, July 10, 2026
Multi-strategy hedge funds, acting as index rebalancing traders, reportedly made $3.7 billion in June by capitalizing on predictable demand from index funds. This strategy involves anticipating and fulfilling the large buy orders that index funds must execute when companies are added or removed from major indexes, such as SpaceX's recent inclusion in the Nasdaq 100. While this practice can be profitable, it also carries significant risk, as highlighted by a previous loss of $900 million for the same team in February.
“So the space Eggs joined the NAZAC one hundred basically Monday evening or Tuesday morning depend a Hay account, and it's been like it went down that day. He closed down on Monday, despite you know, tens of millions of shares trading hand because all the index ones had to buy it, and this brought some attention to the index three balancing trade.”
“Yeah? At first I thought like year to date, like the three point seven billion dollars UH singular month of June was fantastic for these guys having the time of their life, and there was a lot happening in June. Obviously.”
“So the hedge ones make money by antsipating index fund demand.”