Replies to post #2274 on Insmed Inc (INSM)

[supacharja]

Ed...that isn't necessarily true. FWIW, it comes down to the fund's charter (which can be amended) and what is communicated to investors through the prospectus. There are many mutual funds that do invest in micro and small cap stocks. There are also many that do not. For instance, some mutual funds invest solely in socially and environmentally responsible companies (i.e. ixnay on Altria, Molson Coors, Fortune Brands etc.). It all comes down to making sure the charter communicates through it's prospectus what the fund's investment style is and its self imposed guidelines etc. FWIW - all-cap investing is becoming more and more popular as it gives active mutual fund managers less restrictions...as a result, charter language is becoming more and more vague.

[coinstarz]

In general, mutual funds such as pension funds, public/gov funds cannot buy a stock that is under 10 bucks or 5 bucks. But many private funds can. Here are a couple of examples: CIEN and ALTH. Both are below 5 or 4, but inst ownership is more than 60% for each. I know Warren Buffet can buy any kind of stock. He bought Level 3 when it was below 2.

When I bought INSM at 1.38 last week (see my previous posts), I knew a few wealth investors (i-hub members) bought at 1.36 too. Again, INSM is not a day-trader's stock. Don't trade INSM. Don't buy INSM on margin. Buy and hold, you will be rewarded in several years.