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Create 2021-05-02-Its-Just-a-Bug-Bro-Part-VIII.md
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It's Just A Bug, Bro Part 8: Those Are Some Bad Roaches Edition
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===============================================================
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| Author | Source |
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| :-------------: |:-------------:|
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| [u/hell-mitc](https://www.reddit.com/user/hell-mitc/) | [Reddit](https://www.reddit.com/r/Superstonk/comments/n3l1ao/its_just_a_bug_bro_part_8_those_are_some_bad/) |
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---
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[DD 👨🔬](https://www.reddit.com/r/Superstonk/search?q=flair_name%3A%22DD%20%F0%9F%91%A8%E2%80%8D%F0%9F%94%AC%22&restrict_sr=1)
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[](https://preview.redd.it/492swabr7tw61.png?width=491&format=png&auto=webp&s=3e776edab66d81035343a60a64f0fd7b7325431a)
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TLDR: Fuck I hate you. But because I love you and want to help you - This fund is literally lying to their clients about GME. I would be paying very close attention to where my money is invested, because these people don't have my best interest in mind.
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[](https://preview.redd.it/xsf0z8la4tw61.png?width=490&format=png&auto=webp&s=3d932a772927e6e5be0d54ddc34b894f1afab0fb)
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Not financial advice, make your own decisions on how you invest, but do your own due diligence. *Get it?*
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In the last week we have all been examining SEC filings a lot more. I think it goes without saying that we are all understanding it a lot more.
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Well, I have found another little bit of information from more billionaires who are so concerned about Gamestops lack of growth after the Jan squeeze that they have straight up removed it from all of their EFT funds, and into their own pockets.
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Now, if you know anything about the legal term "Adviser" vs "Advisor", an "Adviser" is required to act in the best interest of their clients. An "Advisor" is not as esteemed of a title, but is still an integral part of the financial sector.
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Last week, I found a link between Dimensional Fund Advisors (a massive ETF investment firm) and Susquehanna. It seemed that DFA holds (or held) some amount of shares of Susquehanna in the past, however I think I may have been wrong that they are a large portion of Susquehanna (irrelevant; they are still tied in to this).
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So here is how this next part works:
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As an employee you are entitled to pick mutual funds or ETFs that you want to invest a portion of your money into (depending on your companies retirement plan). You are given the "choice" of a bunch of funds and you pull the trigger and your little nest egg grows over your 50 years of slave labor until your retirement date. Hell, based on Dimensionals Funds, my unborn childs funds have already started to grow.
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[](https://preview.redd.it/42k2ckzzosw61.png?width=1850&format=png&auto=webp&s=785623e6a98e788a33c832b419382e840cc602d7)
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rETIreMnTT
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So here is where Dimensional plays into this. Another ~$300B entity that is supposed to have their advisors looking out for their clients, but HAS to follow the main Advisers final decision, based on their prospectus.
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4 Trusts and 1 Initial Adviser that approves everything flowing through these entities.
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And here is the greatest story, I have actually found proof compared to "tHE sHortS CoverREddd":
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FEB 11, 2021
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**After peaking, GameStop's subsequent fall in price put it in the low profitability growth space of the small cap market, which we exclude across our equity portfolios due to low expected returns. Our daily process allowed us to again respond quickly. By February 3, we had completely sold GameStop from all Dimensional portfolios.**1
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Before the sharp price increase in January, GameStop had been a high revenue earner in our lending program over the previous year due to its high cost to borrow. As we do for all stocks held in our portfolios that lend securities, we work to maximize the revenue received, which we believe benefits the portfolio's overall return.
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**The cost to borrow a security also contains information about expected returns. We take that information into account when making trading decisions. In addition, we look to avoid purchasing stocks at loan for high fees, as the expected returns on such stocks are low.**2 **Dimensional's portfolios stopped buying new shares as the information from the high borrowing rate on GameStop indicated a lower expected return.**3
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This example highlights how we implement our daily process each and every day. However, what we did with GameStop is not unique to this situation. We regularly use new information about expected returns in a flexible manner to maintain consistent exposure to higher expected returns. GameStop is a case in point of how quickly prices can change and the importance of a robust implementation process that can be nimble and respond systematically.
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1. Oh did you? Because your SEC filing says otherwise
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2. Pretty sure this is stating they look to avoid borrowing high rate stock for shorting lol
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3. So basically, when GME went to almost $500, the borrow fee DROPPED?!?! We fucking KNOW it is HARD TO BORROW AND THE BORROW RATE IS ARTIFICIALLY LOW CURRENTLY THATS WHY IT WENT BACK TO $350!
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So why does their 13HR/A SEC filing say different???
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[](https://preview.redd.it/ga4aev6lwsw61.png?width=1153&format=png&auto=webp&s=0d7376cf3a14594434edfed405e30b71f4ca01ec)
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[](https://preview.redd.it/rv6o6hmxwsw61.png?width=1890&format=png&auto=webp&s=35b91c5e9499466a8d1714f574c35970fcb198dc)
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These fucking guys are flat out lying to their clients. They basically said we sold it from all of our funds, but we might make more money off it (we will), so we are keeping it for ourselves and not the peons invested in our funds.
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Here's the next best part. The chairman, David Booth, came out and had to make a statement because so many people were asking questions.
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<https://www.dimensional.com/us-en/insights/think-investing-is-a-game-stop>
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[](https://preview.redd.it/1u0y6sxfxsw61.png?width=903&format=png&auto=webp&s=41f45ceadffca71be8ca450029163b9eb2048090)
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Wait, this isn't a casino?
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"... I've always believed you're better off betting with the whole market than on individual stocks, through a low-cost, highly diversified portfolio. Then let time and compounding do their work. Compounding is the investor's best friend: if an investment grows at a rate of 10% a year, that means a dollar invested has doubled every seven years.1 As a point of reference, the S&P 500 has grown at rate of 10.26% since 1926, though it's worth noting that the path is rarely smooth..."
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He's basically saying, shut up and accept your 10% per year in our funds so we can make more money and you can keep working. 10% per year? YAYYYY. Does this account for inflation? Because your 10% compound is pretty much garbage with "2% inflation" *wink wink*.
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"... Indexing has turned out to be a good solution for many people. I was involved in the creation of one of the first index funds early in my career, and I've enjoyed watching the positive impact indexing has had on the industry. For those who want more customization and flexibility, there are ways to build on the strengths of indexing while correcting for some of its weaknesses. At Dimensional, we've been working on improving upon indexing for the past 40 years..."
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A good solution. Not a great solution. He basically created the index funds, and between him and everyone else saying "rEtAIl is CAuSnG tRouBLEe!!", I am willing to bet they are about to lose A LOT of money if individual investors get into researching their investments on their own. Their cash cow is about to die and they fucking know it. He doesn't even speak about GME in this article, but he fucking *KNOWS* what is going on. And if our parents are starting to call their investment firms asking about GME, then they know they can't get ahead of this if more people keep buying it.
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Basically, all of this is eluding to the fact they *reallyyy* don't want retail around for this stuff. Because it will literally cause a wealth shift to those who have funded their rich lifestyle for the past 50 years. And will add a variable that they can't predict.
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More confirmation bias when billionaires come out and say that people should be more concerned about their risk than researching and finding their own plays.
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Fuck you, pay me.
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Oh, and you want some proof we are on the right track? I have some messages I have been receiving from people after my last post, trying to make me feel paranoid. I don't believe there is some grand conspiracy here. This is billionaires who overplayed their hand and are about to get bent over by retail and might have to work a part-time job again if more people switch to retail. I will show anyone the messages if they ask, because I don't really think the time spent diving down the conspiracy hole is going to help any of us.
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[](https://preview.redd.it/qjeh5szj1tw61.gif?format=mp4&s=03f0def8ebdef949039d041353f09802b29d569a)
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Personally, I would be calling Dimensional and finding out why they blatantly lied in their releases if I was a customer. But I am not, so I don't care.
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References:
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1. <https://www.sec.gov/edgar/search/?r=el#/ciks=0000354204&entityName=DIMENSIONAL%2520FUND%2520ADVISORS%2520LP%2520(CIK%25200000354204)>
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2. <https://www.sec.gov/Archives/edgar/data/354204/000035420421000651/xslForm13F_X01/13FQ42020.xml>
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3. <https://blog.amdgservices.com/dimensionals-approach-to-the-gamestop-trading-events>
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4. <https://www.dimensional.com/us-en/insights/how-we-handled-gamestop>
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5. <https://www.dimensional.com/us-en/insights/think-investing-is-a-game-stop>
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6. <https://us.dimensional.com/funds>
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