Originally Posted by
Scrunch
Agreed Beagle has made a number of great contributions on this forum, although one of the things Beagle posted did kinda annoy me. He claimed that because he had a zero holding in one of the largest market cap companies on the NZX, he was a neutral voice. He also concurrently suggested the benefits of a diversified portfolio. If he wasn't a smart pup I'd have said he missed the point, but because he is a smart pup, I suspect he decided to selectively ignore the following issue.
A market weight diversified portfolio will have a ATM holding (and also holdings in the other NZX big cap's like FPH, AIA & MEL). Knowing about ATM and choosing to have a zero holding is effectively taking a negative position in ATM. Its not as negative position as shorting ATM, but its but still negative. Having taken a negative position, you like shorters will want ATM to go down, or at least not up as quickly as other shares.
Disc Hold ATM, but only a modest holding. No FPH, AIA or MEL.