STARWOOD FINANCIAL RETURNING TO INDICES

Source: Frank Russell Co.

NEW YORK -- Frank Russell Co., in an about-face, said it will now include Starwood Financial Trust in its Russell 1000 and 3000 stock indices, albeit at a lower weighting.

The move comes just days after Frank Russell removed the commercial mortgage lender from the indexes because only a small amount of its shares are available for trading. Russell, an investment management and consulting firm, said it will now reduce Starwood's weighting in the indices to reflect the smaller float rather than remove it altogether.

Russell's moves have contributed to a roller coasterlike ride for the shares of Starwood, headed by financier Barry Sternlicht. Starwood's shares are susceptible to wide price swings because less than 600,000 of its 52 million shares are not held by insiders and are available for trading.