The Handbook of Equity Style Management
Third Edition

The Handbook of Equity Style Management
Third Edition

The Handbook of Equity Style Management
Third Edition

Several changes have taken place in the past three decades in the U.S.
capital markets. An important one among them is the reduction in
the direct holdings of corporate equities by individual investors and a
corresponding increase in institutional holdings. The growth of mutual
funds and pension funds during this period has been the primary cause
of the sharp increase in the institutional holdings of equities in the U.S.
Whereas mutual funds and pension funds held only 14% of all U.S. corporate
equities in 1970, they held almost 40% by 2001.
1
While holding
equities through money management institutions has made it possible
for individual investors to reap diversification benefits and plan sponsors
to benefit from specialization, it has not been without cost.

T. DANIEL COGGIN
FRANK J. FABOZZI