That's not exactly fair. They hold many assets, so of course any action on any individual asset may not have a significant effect. However, if they behave similarly across all similar assets, it will have an effect on the overall fund.
I think the percent of holdings argument is going to apply to these funds at Fidelity even if you take all the startups they own together. I guess "tens of millions" becomes excessively dismissive though.
Sure but even still, suppose an analyst saves all of Fidelity's clients 1M in two days worth of work. We can't dismiss that as silly because that savings is so small compared to 5 trillion AUM, right?
I'd also like someone who understands the issue well to let us know whether these mark downs have any tax implications to begin with. I think it might sometimes be the case that marking down such a holding would allow recognition of a tax loss but I don't think that is going on here.
