FYI:( I agree with Martin Schmalz, assistant professor of finance at the University of Michigan’s when he says, "If one owner held 52% of an industry, he said, there’s no question of control of the industry, he pointed out. It’s clear that that person has control. The common-ownership theory suggests that when there are four or five institutions, each with, say, 4% to 6% stakes in several companies in the same industry, there is a potential for undue influence on corporate managements to, for example, keep consumer prices higher than they otherwise might be."
"To me, the overall theory seems doubtful. It appears to posit that all the fund managers across an institution’s many funds act in concert with all the managers at the other institutions owning the companies in that industry, and that the CEOs are also colluding with these managers in some overt way.")
Can institutional investing have anticompetitive effects? I’m still not convinced.
Regards,
Ted
https://www.barrons.com/articles/do-big-investors-push-the-antitrust-envelope-1537220418?mod=hp_RTA
