paper:https://t.co/eIY1D3yqN2 response:https://t.co/jyMLF2FK0m I do find the response more compelling than the initial paper. It's made me much less worried abt big index funds' rising corporate control, as long as they mostly continue to displace very…
@trentlapinski @CyrusShepard “. Investment firms shouldn’t be allowed to use their trillions of dollars to culturally and politically influence entire countries” Generally the complaint is passive ETFs are passive, and don’t care to resource governance..…
Rival index funds hold highly correlated portfolios, so activist corporate governance is subject to free-riding. That’s why index funds increasingly lend their votes to less diversified investors (hedge funds, insiders, etc), who stand to gain much more. …
@ZachariahSchwab @bswud These funds have strong incentives to internalize market power externalities & r incentived to be good stewards — because the correlation between their portfolios and their rivals r less high. Below tweet was a bit too strongly…