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Tracie Woidtke, et al., "Reining in Activist Funds," in Harvard Business Review, March 2003 (harvardbusinessonline.org)
Public employee pension funds now rank as some of the nation's largest stockholders. Many of these funds, such as California's $136 billion CalPERS are willing to flex their mighty financial muscles to advocate for issues such as affordable housing and human rights in developing nations. To Texas A&M scholar Tracie Woidtke and her two coauthors, this behavior "often represents a clear conflict of interest" for managers who are responsible for improving funds' returns and, at the same time, want to realize political goals.
Citing her own previous work, Woidtke finds that companies with large numbers of shares held by activist pension funds tend to have lower market ...
Source: HighBeam Research, Control the funds. (Business And Economics).