Today the Committee on Capital Markets Regulation submitted to the Federal Trade Commission a Nothing But The Facts (“NBTF”) statement on the evidence that common ownership of firms by investment funds managed by the same asset manager increases anticompetitive behavior by those firms. The study purporting to provide empirical evidence of a relationship between common ownership and anticompetitive behavior in the airline industry is based on faulty assumptions about the economic incentives of asset managers and also fails to account for how index funds treat firms that are in bankruptcy. Accordingly, it fails to provide meaningful evidence of a relationship between common ownership and anticompetitive behavior.

The statement can be downloaded here.