so, here is something that i know for a fact has been happening..
Hedge funds have been collapsing the spread coming into KDRO expiry end of April
It is a risk free trade at moment. So, those who can trade the spread..are shorting KDR, and buying KDRO..
You will notice that our short KDR interest has gone up significantly in the last month or so..that is because we are coming closer to expiry in KDRO...and Hedge funds are buying KDRO as the hedge ( shorting KDR) ..This spread will collapse soon. I suggest that is the reason of the latest underperformance..and could well be the reason for outperformance..starting now...until end of April
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