The surge earlier in the week of Volkswagen’s stock on the German markets that threatened hedge funds could also be a bad sign for Deutsche Boerse, The Financial Times reports.
Fund managers have complained that the fluctuations of the automaker’s stock are indicative of the weakness of the German exchange operator in handling equities.
“The tail has been wagging the dog and it calls into question the confidence that investors in tracking funds, ETFs and so on can have in these indices,” says Franz Wenzel, a senior strategist at Axa Investment Management.
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