This might be ignorant, but I was looking at a hedge funds portfolio and they have big holding in two companies in the microprocessor sector. If the hedge funds ownership can lead to direction of the companies boards activities, isn’t there a danger of them doing things that favor one company over another?
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As others have said, they don’t really have say in how these companies are run so it’s not a conflict.
But far more importantly, one companies success is not their competitors failure. This is especially true with microprocessors which probably always have some artificial barriers to keep it from becoming a monopoly. Intel cannot squash AMD even though they could probably leverage their vast wealth and influence to do so. The courts caught them the first couple times they tried, and Intel would probably be broken up if it ever happened fully.
And from a practical perspective, they can coexist for a long time with a constantly growing market for components, even if it has some ebb and flow.
Source: I worked for AMD and, while not involved in government regulations, I paid attention in more than one presentation.
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