Hertz Global Holdings, Inc. was added to several Russell Growth Indices, including the Russell 3000 Growth Index, Russell Small Cap Comp Growth Index, Russell 3000E Growth Index, and Russell 2500 Growth Index. This reclassification reflects a shift in how the market perceives the company's growth potential and underlying financial characteristics.
Concurrently, Hertz was dropped from corresponding Russell Value Indices, such as the Russell 2000 Value Index, Russell 3000E Value Index, Russell 3000 Value Index, Russell 2500 Value Index, and Russell Small Cap Comp Value Index. These changes are part of the annual reconstitution of the Russell family of indices.
Index reconstitutions can lead to significant passive fund flows as index-tracking funds adjust their portfolios to reflect the new compositions. This reclassification from value to growth indices suggests that Hertz's strategic transformation efforts are beginning to be recognized by the market as having growth-oriented characteristics.
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