FYI: What happens when index funds run Corporate America?
Hedge fund activist Bill Ackman posed that question recently in his fund’s annual letter to investors. It’s a really good one. No one knows what consequences the boom of passive investment funds will have for the corporations they own. It’s something my coauthors and I explore in a forthcoming research paper, and our conclusion goes against the prevailing wisdom
Regards,
Ted
https://hbr.org/2016/05/research-index-funds-are-improving-corporate-governance