More hedge funds are holding bigger stakes in public companies, according to research by Gartmore. In an analysis prepared for Financial News, the U.K. fund manager found that hedge funds hold at least a 5% stake in 38% of the world’s public companies, a jump of 12 percentage points from a similar study in 2004. Gartmore says that the percentage of hedge funds with a 10% or more stake in public companies has doubled in the past two years from 10% to 20%. With that size, says FN, comes the power in a number of countries for hedge funds to call a general meeting. A sampling of those companies shows that eight hedge funds together have a 10% stake the New York Stock Exchange; 19 HFs account for 26% of MasterCard; 28 funds represent 38% of U.K. cable operator NTL, and 10 hedge funds control 15% of Polo Ralph Lauren. For public companies, the ever-increasing hedge fund presence among stockholders could be a mixed blessing, as the activist ones among them could stir up the pot not to the liking of everyone – just ask the folks at Deutsche Borse after the Children’s Investment Fund Management and Atticus forced a management change. However, one company finance director sees the benefits, telling FN, “They have become an important part of our shareholder base; it has changed enormously in just the past two years. The managers we have met have done their home work and ask stimulating questions.”