Blog > US Stocks and Markets > Vanguard is selling stocks like there’s no tomorrow
 | Email This Article Email This Article  | 

Vanguard is selling stocks like there’s no tomorrow

Posted August 7, 2008

Vanguard is shedding stock holdings like hair flying off a cat getting its temperature taken at the vet’s office. Is this a portent for further market declines? Or is Vanguard in need of cash? Neither reason bodes well.

by J. Christoph Amberger

Baltimore — (TFN): Vanguard, one of the world’s largest investment management companies and a leading provider of company-sponsored retirement plan services, has reopened its Vanguard Explorer Fund and Vanguard Health Care Fund to new shareholder accounts. Both had been closed in February 2006 and March 2005, respectively.

“We believe that the funds can accommodate additional assets at this time, given their current size and cash flow levels,” said Vanguard Chairman and CEO Jack Brennan.

That pretty much goes without saying: Who CAN’T accommodate more capital at this point in time?

This would not have gained much attention at TFN, had it not been for the fact that each and every stock we looked up in Google today had “holdings reduced by Vanguard Group Inc.” in the first line of its news coverage.

Among the ones sold were Pharmos Corp (PARS), Lumera Corp (LMRA), Mcf Corp (MERR), Digirad Corp (DRAD), Lsb Inds Inc (LXU), National Presto Inds Inc (NPK), Nacco Inds Inc (NC), Mitcham Inds Inc (MIND), Natural Alternatives Intl Inc (NAII), Mettler Toledo Intl Inc (MTD), Prestige Brands Hldgs Inc (PBH), Pico Hldgs Inc (PICO), Physicians Formula Hldgs Inc (FACE), Reddy Ice Hldgs Inc (FRZ), Mb Finl Inc (MBFI), Mainsource Finl Group Inc (MSFG), Mutualfirst Finl Inc (MFSF), Team Finl Inc (TFIN), Private Media Group Inc (PRVT), Blackstone Group LP (BBN.BE), Bitstream Inc (BITS), Meadowbrook Ins Group Inc (MIG), Penns Woods Bancorp Inc (PWOD) holdings reduced by Vanguard Group Inc, Beverly Hills Bancorp (BHBC), Danvers Bancorp (DNBK), Codorus Vy Bancorp Inc (CVLY), and a whole slew of other companies from every sector and every category. I could go on for hours…

Vanguard manages nearly $1.25 trillion in U.S. mutual fund assets, including more than $360 billion in employer-sponsored retirement plans.

Are we looking at some start-of-Q3 housekeeping? Or is the sudden sell-off of equity, combined with the re-opening of the two closed funds and indication that the company may be in dire need of liquidity?

Inquiring minds want to know — please use our TFN Network Feature via the Comments to let us know what you think… or what information you may have on this.

****Make sure you sign up for our FREE TFN News Feed for breaking news, special reports and new financial videos. Sign up through your favorite reader here. Or, if you prefer, have the feed delivered to your email.

Related Articles


Posted by J. Christoph Amberger · Filed Under US Stocks and Markets 

Comments

Viewing 1 Comment

close Reblog this comment
Powered by Disqus · Learn more
blog comments powered by Disqus