"US funds 'clear positions' to prepare for super IPO, new index regulations will accelerate 'bleeding' of large-cap stocks like SpaceX"

Wisdom Finance APP has learned that large mutual funds and passive index funds are beginning to reserve more cash and are preparing to reduce their holdings of existing large-cap stocks in order to include high-profile IPOs such as SpaceX and OpenAI in their portfolios. In a report to clients on May 22, John Flood, Managing Director of FICC and Equity Business at Goldman Sachs Global Banking and Markets, said that for passive funds, the potential inclusion of newly listed companies may force them to reduce their existing positions in other large-cap stocks.