I don’t think this is the case in any meaningful way, especially through the 401k mechanism, as participants are forced to delegate their ownership rights to th

I don’t think this is the case in any meaningful way, especially through the 401k mechanism, as participants are forced to delegate their ownership rights to the fund manager, which is yet another layer of dysfunctional fiduciary abstraction. The latest set of developments here are the fiduciary duties to ESG, which was intended to align long-term interests of fund participants and fund managers, but has been warped into a tool for fund managers to control investment flows arbitrarily by ESG ratings rather than by passive market indicators. It’s easy to see how this could be abused in a scenario like the listing and then de-listing Tesla in the ESG index. Smaller private equity funds can nimbly adapt to front-run the bigger funds even without prior knowledge of the rating change. This does not rule out the possibility of either prior knowledge or purposeful manipulation; easy to do and hard to prove.