U.S.-based open-end mutual funds and exchange-traded funds own nearly a third of the stock in America’s two publicly traded gun companies, even as many investors are snubbing those shares. Since Vista Outdoor Inc., a sporting-goods company, sold gun maker Savage Arms in July, the only two remaining gun-company stocks in the U.S. are Sturm Ruger RGR 1.22% & Co. and American Outdoor Brands Corp. AOBC 2.82% , owner of gun maker Smith & Wesson. There are some 201 funds invested in one or both of the companies, mostly small-cap funds, reflecting the companies’ market capitalization. Sturm Ruger and American Outdoor Brands have underperformed the broad market this year. Sturm Ruger and American Outdoor Brands didn’t respond to requests for comment.

Source: Wall Street Journal November 04, 2019 03:00 UTC