You’d be surprised at how Wall Street works sometimes. Not sure about this particular case, but what can happen is that the fund managers talk, and they stop buying (or even start selling) shares of the company. These funds may look small to you, but if they can drive a 5 or 10% drop, things spread like wildfire. Further, it’s likely that one of these fund managers have a strong relationship with another fund manager, and if the proposal is reasonable, then others may jump on the bandwagon.
Finally, consider how the situation changes if someone at BlackRock decides this would be helpful. All of a sudden, the conversation changes immensely due to the large number of shares they control.
Institutional shareholders own almost 3/4 of all shares. Ownership is not the same as control, but it’s a good proxy at this level [0].
Finally, consider how the situation changes if someone at BlackRock decides this would be helpful. All of a sudden, the conversation changes immensely due to the large number of shares they control.
Institutional shareholders own almost 3/4 of all shares. Ownership is not the same as control, but it’s a good proxy at this level [0].
[0] - https://www.nasdaq.com/symbol/fb/institutional-holdings