deal close
cash bid / premium NAV capture proceeds redistribution residual signal
How the $72.50 TMHC cash takeout flows through XHB equal-weight mechanics 1 announcement 2 gap-up 3 NAV capture 4 index removal 5 redistribution $72.50 cash 24% premium TMHC $72.45 gap to deal arb spread $0.05 (collapsed) XHB fund ~4.1% TMHC weight NAV premium captured S&P Homebuilders index gate gate: closed redistribution across ~35 equal-weight constituents residual thesis housing-cycle signal Berkshire endorsing the bottom

Toggle the deal-close switch to reroute the plumbing. Pre-close: the cash bid compresses the arb spread and premium pools into XHB NAV. Post-close: the index gate opens, the cashed-out TMHC position is sold, and proceeds redistribute as a modest equal-weight rebalance across the remaining basket — leaving the residual housing-cycle signal once the $0.05 arb spread has collapsed.