Chicago Mayor's plan backfires; Mutual funds invest in gun companies anyway

A few weeks ago Chicago Mayor Rahm Emanuel wrote letters to several mutual funds asking them to pressure gun companies into embracing newly proposed gun laws, and as it turns out the political pressure hasn’t persuaded the investors to alter their portfolios.

In order to comply with the Securities and Exchange Commission’s rules and regulations investors that hold a significant percentage of stock in a publicly traded company has to report just how much they own. A handful of the mutual funds contacted by Emanuel — Allianz, BlackRock, Vanguard, and Capital World Investments — submitted those forms and reported last week that they would retain ownership of Smith & Wesson and Sturm, Ruger and Company.

According to the documents filed:

In addition to those investors singled out by the Chicago Mayor, a handful of other mutual funds also reported ownership of Ruger and Alliant Techsystems (ATK) stocks.

This is undoubtedly good news for the gun companies as several investors running pension plans and whatnot have decided to dump most or all gun-related enterprises.

Yesterday the New York Times reported that California Public Employees’ Retirement System, the America’s biggest pension fund with more than $254 billion, divested its $5 million worth of shares in gun companies.

Last week the New York teachers’ retirement pension fund, the nation’s largest pension fund, dumped about $13.5 million from gun-related companies.

Shortly after the shooting at Sandy Hook in Newtown, Connecticut, the California teachers’ retirement pension fund pulled all of the money it had invested in Freedom Group, which owns a slew of gun makers.

And Cerberus, a private equity firm that owns Freedom Group, decided to sell away what it could of Freedom Group and abandon ties with the gun world.

Latest Reviews

  • Gear Review: Sig Sauer Tango 6T 1-6

    Sig Sauer has long been a big name in the firearms industry, so it came as no surprise several years ago when Sig filled out its repertoire with its own optics line. Today, we’re looking at the Tango 6T, a 1-6 low power variable optic.

    Read More
  • First Look: Hornady 6mm ARC

    Hornady brought another impressive project to the shooting public in 2020 with the introduction of the 6mm Advanced Rifle Cartridge.

    Read More
  • Gear Review: Sig Kilo 3000 BDX Binos

    Featuring the company's BDX technology, the Kilo 3000 sits at the tops of Sig Sauer’s optics line bringing binoculars and laser rangefinders into one unit. 

    Read More
  • Scope Review: Leupold VX-3i CDS-ZL

    The new-for-2020, VX-3i CDS-ZL riflescope, is an American-made optic that can be customized for your exact specifications, is easy to use and is backed with a Lifetime Guarantee.

    Read More

Loading