Is it possible for too much money to be in funds that automatically allocate based on company value? Imagine if 90% was in index funds like the S&P - would that distort the accuracy of the market?
The limiting factor is leverage. If a hedge fund (or equivalent) had enough data and confidence in a company, they would borrow money to increase their position size. This would make it possibly to affect price for non passive investors.
I'm pretty sure.and I'm pretty sure that pension finds already changed market dynamics and price isn't accurate anymore...