Insurance Companies, Mutual Funds, Hedge Funds, etc. However, it depends on the rules that each has to comply with. Some mutual funds are not allowed to purchase stocks under $10 or under $5. That's why the risk goes up substantially for these "cheap" stocks. You want your interests to be aligned with these investors, as they tend to be the "smart" money in a stock. It is considered to be a conservative strategy to purchase stocks with high institutional ownership. Unless the institutions want out. Then, you could get in to trouble in a hurry.