Adonis Diaries

The Big Three funds own 22% of S&P 500 companies?

Posted on: January 16, 2020

The Big Three funds own 22% of S&P 500 companies?

The Big Three are the most important players in corporate America. Whether they like it or not.⠀

● The success of index funds has had a weird and unintended consequence. As millions of investors have done the most sensible thing financially, they’ve also concentrated shareholder power in the Big Three.

Some 22% of the shares of the typical S&P 500 company sits in their portfolios, up from 13.5% in 2008.

Their power is probably greater, given that many stockholders don’t bother to vote their shares.⠀

BlackRock, Vanguard, and State Street combined own 18% of Apple Inc.’s shares, up from 7% at the end of 2009. Of the four largest U.S. banks, the fund companies together own 20% of Citigroup, 18% of Bank of America, 19% of JPMorgan Chase, and 19% of Wells Fargo.

The phenomenon can be even more pronounced for smaller companies.

The Big Three own 28% of Cabot Microelectronics Corp., an Aurora, Ill., seller of materials to semiconductor manufacturers that has a market value of $4 billion.⠀

● The index funds in your piggy bank are great investments. But at what cost? Read more by clicking the link in our bio, and follow @businessweek for more.

Of the $3.6 trillion-worth of capital managed by hedge funds globally, $340bn is handled in and around Greenwich, Connecticut.⁠

Greenwich is a small town with one of America’s greatest concentrations of wealth. It was a powerhouse of 20th-century finance, thanks to low taxes.⁠

Among today’s residents are Ray Dalio of Bridgewater, the world’s most successful hedge fund, Tom Brady, an American footballer, and his wife, Gisele Bündchen, a Brazilian supermodel. ⁠

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

adonis49

adonis49

adonis49

January 2020
M T W T F S S
 12345
6789101112
13141516171819
20212223242526
2728293031  

Blog Stats

  • 1,440,150 hits

Enter your email address to subscribe to this blog and receive notifications of new posts by email.adonisbouh@gmail.com

Join 783 other followers

%d bloggers like this: