Copy The Trades of The World’s Largest Hedge Funds
Not got enough time to research your own stock picks?
Don’t know how to research stocks?
Why not just copy the investments of the largest hedge funds in the world?
At the end of each quarter institutional investors who manage over $100 million in assets must file a form called a 13F with the U.S. Securities and Exchange Commission (SEC) detailing all their current holdings. There are a small number of websites that consolidate and report this data so that you can find out what these funds are buying and selling.
Usually these websites let you check one stock and see what funds are holding or one fund and what stocks they are holding. However, the website Track Funds not only does this but it’s also the only place (for free) where you can actually set your own criteria to search and filter all stocks and all funds down to a few potential options that match your criteria. For example you can filter on the following metrics:
- How many funds hold the stock
- How many funds are increasing/decreasing their holding vs last quarter
- How many funds have entered/exited the stock vs last quarter
- How many funds have the stock within their top 10 holdings by value
- How the stock price has evolved over the last two quarters
OK so time to get into some use cases to demonstrate what you can do with this tool!
I want to know what Warren Buffet is buying!
Warren’s New Positions
We can filter for any fund and see their holdings and how they have changed vs the previous quarter. Let’s take a look at Warren Buffet’s famous fund Berkshire Hathaway Inc.
Scroll down to the Funds Interface.
Rank the new/exit column to see their latest purchases.
Looks like they are bullish on Floor & Décor Holdings Inc and Royalty Pharma PLC this quarter. If we click on Floor & Décor Holdings Inc and scroll up to the Stocks Interface we can see what all other funds are doing on this stock.
There are a total of 377 funds holding this stock with 208 funds either entering or increasing their position since the last quarter. With only 153 decreasing their holding we can see a positive sign of a net 55 funds increasing their position. In addition we can see a net 40 funds have entered vs exited this stock in the last quarter and 9 funds have this as one of their top ten holdings. Finally we can see that there is a positive trend on the stock with the price moving up 28% since the prior quarter and 12% since the most recent quarter end.
Warren’s Increased Positions
Ranking the column % shares change we can see that they have been buying more Chevron.
Again this looks a popular move this quarter with a net 349 funds increasing their position vs decreasing.
I want to find my own stock pick ideas!
Search and Filter
Helpfully Track Funds lets you filter all stocks and funds for any of the 5 criteria above (plus more). For example lets say I wanted to find a solid stock that has over 200 funds holding it, more than a 50% gain in the number of funds holding vs last quarter and the stock price has gone down since the prior quarter close (so I can buy at a better price than the funds!) then I would be left with a total of 14 stocks to pick from this quarter. Coupang Inc looks interesting with 22 funds also holding it within their top 10 holdings by value.
Follow Funds on Fire
Today Dicerna jumped 79%. If we filter on this stock we can see that the fund Commodore Capital LP went in heavy over the last quarter into this stock before the pop. We can check to see their other strong buys which haven’t yet moved.
They also entered Tenaya Therapeutics Inc last quarter and it seems other funds like the look of it too with 46 other funds entering.
Summary
This is a tool which lets you stand on the shoulders of people who potentially have more time and experince in stocks and also may help you buy in at a cheaper price. Happy days. Find out more at Track Funds.
Note: Data presented “as is” at the time of writing. This article is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
