Investing legend Rob Arnott's $ 147 billion firm says stocks kicked out of the S&P 500 have huge upside — and is betting on these 7 recent dropouts trading at bargain prices

When a stock gets dropped from a major index like the S&P 500, index fund managers scramble to exit their holdings. But legendary investor and Research Affiliates founder and chairman Rob Arnott does the opposite — instead, he buys up index rejects at a deep discount. It seems counterintuitive to bet...

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