Avid Bioservices Inc (CDMO)

[jakedogman1]

Great article on rebalance process:

http://www-ac.northerntrust.com/content//media/attachment/data/white_paper/0605/document/whitepaper_...

From another article:

Some analysts claim the annual Russell 2000 rebalancing has a detrimental effect on index fund returns because of "front running." Index front running is usually cited as a major weakness of index funds that results from their transparency. Essentially, the claim is that hedge funds can profit from an index rebalance by buying added stocks before index funds do (which drives up the price) and then selling them to the slow-witted index funds. Time (and of course timing) is of the essence when front running because you're subject to other market factors aside from "index effect." In any case, Wall Street does churn out a fair amount of research dedicated to predicting index additions and deletions, most likely because research has demonstrated that stocks do experience a price pop when added to an index (the reverse happens when they're booted from the benchmark).