Believe it or not, hedge funds do not run the stock market. In fact, they own only 3 per cent of the market.
“Hedge funds and ETFs represent small but growing shares of the equity market,” wrote Goldman Sachs’ David Kostin in a new report to clients.
“Households directly own 38 per cent of the US equity market,” he wrote. “However, the total effective household ownership is closer to 80 per cent when combined with indirect ownership in the form of mutual funds (20 per cent), pension funds (16 per cent), and insurance policy holdings (7 per cent).”
Here’s the chart breaking down the ownership mix since the 1940s:
Photo: Goldman Sachs
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