Matt Levine, an opinion columnist covering finance for Bloomberg, references an article written by Professor Thom Lambert of Mizzou Law and Professor Michael Sykuta of the Department of Agricultural and Applied Economics at Mizzou: “The Case for Doing Nothing About Institutional Investors’ Common Ownership of Small Stakes in Competing Firms.”

Levine asks, “Should index funds be illegal?” The article written by Lambert and Sykuta says no, and Levine emphasizes their point that the concern about intra-industry institutional investors reducing competition in that industry does not take into account that those institutional investors might also be inter-industry diversified.