Originally Posted by
mklein9
Pascal, this brings up a question that has been in the back of my mind for a while. Many components of MF analysis are market weighted, which is market cap weighted according to your answer to Bernie's question. Quite a few of the stocks in the MF universe are very, very low capitalization, such as ENER ($20 million), CSKI (under $40 million), FEED (under $30 million), etc. In total about 100 are under $1 billion, while about 300 have market caps over $10 billion and about 30 have market caps over $100 billion. Of course what this means is that when market weighting, it would seem that the MF related results are dominated by a relatively small number of companies. There is a range of over 10,000:1 in market caps.
On the other hand there seem to be a few parts of the system, like OBOS as far as I can tell, that are simply votes -- every company gets an equal vote in the outcome (or, at least, in its sector's outcome).
Of course most of the institutional funds we care about are going to/from the big cap stocks so this seems appropriate. I'm just wondering if this is an accurate portrayal.
Thanks,
-Mike