Its not about how much of the company a fund owns but how of the fund is in ADT as funds come in all sizes and the % of the fund in a stock represents the manager's conviction in their research.
Question: Who has more conviction, a fund that owns 5% of ADT but its 1% of their fund or the manager that owns % of ADT but its 5% of their Fund?
Answer: The later who put more of their investor's capital into the stock.
Why? The later manager expects the stock to make meaningful gains to the fund and if ADT were to flop it'd hurt fund performance a lot. For the former, it'd add performance if it works (given multi-bag upside) but if it doesn't (goes down 5%) it's a rounding error to the downside.
Ann: Adriatic Awarded Urban Planning Permit, page-31
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