Recent regulatory filings reveal a stark divergence in institutional sentiment toward the Invesco QQQ Trust. Paradigm Capital Management aggressively increased its exposure during the third quarter, boosting its stake by 121.4% to 2,998 shares valued at approximately $1.8 million. Conversely, SouthState Bank significantly reduced its position, slashing holdings by 44.6%.
Nasdaq Proposes "Fast Entry" Rule
In a separate development, Nasdaq has initiated a consultation on a proposed "Fast Entry" rule designed to expedite the inclusion of major new listings into the Nasdaq-100 index. The change would allow a newly listed company ranking among the top 40 by market value to join the benchmark within 15 trading days, provided at least five days' notice is given. No existing index constituent would be removed to make room.
Michael Ashley Schulman, Partner and CIO at Running Point Capital Advisors, noted the proposal aims to make "Nasdaq a more complete ecosystem for the big-cats." The move could impact passive funds tracking the index, which would be compelled to quickly purchase shares of new entrants, potentially affecting liquidity and trading costs.
Other Notable Fund Activity
Other institutional investors also adjusted their QQQ positions. Penserra Capital Management reported a 26.2% increase in its holdings, bringing its total to 66,979 shares worth around $40.2 million. The filings, derived from mandatory Form 13F reports, provide a quarterly snapshot of institutional U.S. equity holdings but do not reflect subsequent activity or include short positions.
The Nasdaq consultation also covers potential adjustments to market capitalization methodologies and the treatment of low-float stocks. Any approved changes would take effect after the March 2026 quarterly rebalance. However, the impact remains contingent on the arrival of significant new listings and the final form of the rule.
