The world’s largest mutual fund manager, Vanguard Group, displaced Elon Musk from its position as Twitter’s largest shareholder after increasing its holdings to 10.3%.
As reported by The Wall Street Journal (WSJ), Vanguard Group now owns 82.4 million Twitter shares (10.3 %), according to the most recent publicly available documents filed with the U.S. Securities and Exchange Commission. This is an increase of 15.2 million (1.9 %) since the company’s last report in December.
A competition to dominate Twitter?
However, Vanguard did not necessarily boost its shares in response to Musk’s purchase. According to documentation referenced by WSJ, the U.S. asset-manager increased its holdings “at some point in the first four months” of this year.
But they could have fortuitously benefited from Musk’s intervention, given that Vanguard’s holdings are now worth $3.78 billion, based on Twitter’s closing stock price on Wednesday.
Moreover, most of Vanguard’s holdings are index funds and the rest are passive funds, according to WSJ, implying that the manager didn’t invest in Twitter to bet on the platform or to compete against Musk.
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“The firm often sides with management on voting issues and doesn’t advocate for changes like a hedge fund or activist investor might,” the WSJ report reads of the matter.
Nevertheless, while nearly all of Twitter’s shareholders are financial institutions, Elon Musk and Jack Dorsey are the only individuals with holdings in the platform. Musk, for his part, seeks to acquire all the shares to turn the platform into a “bastion of free speech.”