Why aren’t the rebalance dates announced in advance?
Our Fund portfolios hold substantial positions in the securities that meet our formulas. When we rebalance, we sell our position in each security that no longer meets our investment criteria and then purchase positions in the new securities prescribed by our investment strategy. Such large sales and purchases have the potential of affecting the market prices of the securities. Therefore, we disclose a general rebalance window but will not give specific dates. Were we to “tip our hand”, it might be possible for unscrupulous individuals to “front run” our trading, thus diminishing our ability to achieve the best possible returns for our shareholders.
