HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
To clarify, there's no rule saying that studio fund can only invest in relevant stocks with a release date, but...
All the studio funds have a para in the fund description similar to the following:
"Sony Studio Fund will invest in films released domestically under the Sony umbrella of Columbia/TriStar Pictures, Sony Pictures Classics, Screen Gems and Samuel Goldwyn."
the X in the studio fund comes from "index" - In the real world, index funds are supposed to hold all securities in an index, in the same proportions as the index so they reflect the performance of the index. If you set up an index to measure a studio's performance over a year, it would invest most heavily in movies being released over the coming year.
so I think that if a studio fund is investing only in far off projects with no release date, and absolutely nothing in the studios releases this year, it isn't being managed in the correct spirit.
Against that, there's the consideration that even if WBROX isn't acting in the spirit of an index fund, it also isnt doing anything technically incorrect - they are all Warner projects, and while it is implied there's nothing that formally says "fund managers should give priority to movies being released in theatres". And studio funds here have more flexibility than index funds in the real world - studio funds can short stocks, for example - so is it really meant to be like an index fund? Or is it just a name, like how Starbonds are nothing like real world bonds?
So theres the problem - but what to do about it?
Replacement - especially without warning - is too harsh for something that isn't technically wrong
An email to explain the situation may be more appropriate. D Mac isnt here to micro manage studio funds - but in this case it has been six months without any investment in an opener. Of course, what happens if the manager ignores the email? Again, they're not doing anything technically wrong.
or we can leave things as they are - people who are dissatisfied can call out the fund performance on the board, and hope the fund manager takes notice. If he does, then great, problem solved by the market without heavy-handedness from the regulator. And if he doesn't, the impact on traders and the game is minimal. There will be a new crop of studio fund managers in September and in the meantime, unhappy traders have the option to liquidate their investment in the fund - which I have decided to do.
It's also not a bad thing to have a good example to new players and potential fund managers of what not to do. Making lots of small investments in cheap but far off projects, while ignoring movies in or near release is not profitable, and WBROX demonstrates this nicely.
The Comic Fund [COMIC] is under new management. {nm} Mar 15, 05:53
The flat-lined WBROX Fund needs new Management. Even the paramedics gave up on this one. Mar 15, 16:11
Suggested substitution: "Inexplicably" for "actively" (substantive fund comments inside) Mar 17, 10:11
WBROX is supposed to invest in Warner Bros. upcoming releases. But have a look at what the fund is holding. Mar 17, 16:04
I am not aware of the "[upcoming releases" rule; I just try to make as much profit as I can using eligible investments. [nm] Mar 17, 21:00
To clarify, there's no rule saying that studio fund can only invest in relevant stocks with a release date, but... Mar 18, 06:26
Wasn't WBROX that superstar fund last year? {nm} Mar 20, 21:15
It was. Totally different Fund Manager. {nm} Mar 21, 14:39
Is the comic fund manager asleep? Aug 11, 12:53
Needs new management Feb 06, 17:04
