This sort of activity is actually quite common amidst routine rebalancing as it enables the manager to still maintain some long exposure to AMZN without the single stock risk associated with owning the shares outright and it may create a beneficial tax situation depending on the manager’s individual circumstances.
Likewise, LSKY may see some traction as well, with those that believe the sell-off in the space (and specifically AMZN) is overdone whom are looking to leverage exposure to a potential rebound.
Since inception, SKYY has greatly trailed the broader technology sector, as the fund is down 12.25% versus the Nasdaq-100 losing 1.80% during the same time period.
First Trust ISE Cloud Computing Index
Chart source: StockCharts.com.
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