Any thoughts or ideas on Index Rebalance strategies in the HF space?

Hi everyone,

Happy Holidays!

Any thoughts or ideas on Index Rebalance strategies in the HF space? I have a general sense of what it is - there are alpha opportunities during these index rebalance events when names are added or deleted. But that’s all the extent of my knowledge.

Few questions on this space; 1. What is the actual strategy that is deployed here? Is it more of an arb based approach? Market neutral? (Apologies if that is a dumb question..just trying to understand it fundamentally.) 2. On “regular” days, what does an Index Rebalance team do? 3. Is an index rebalance desk profitable today and in the future? I assume with the continuous move to more passive/index based funds that there is a future for these type of desks/strategy? 4. For those who have exposure in these roles, do you find the work engaging?

Hope to hear from you all!

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