This is a short course that learns the basic principles from following hedge funds and their investments with the help of Hedgollow.All investors are strongly encouraged to read this site carefully, because even intervening investors may never have heard of some of the terms mentioned below.
You are expected to know the basic principles of investments and some terminologies such as Long/Map, Small-Cap vs Large Cap shares, etc.
Types of funds
If you do a Google search for the different types of funds that exist, you would usually notice that funds are often categorized according to their legal definitions.Use the expression we use the expression "Hedgefonds" have resolved to describe each investment company that buys and sells shares.Study the investment of this company.
Actually,Berkshire Hathawayis technically a holding company, not a hedge fund.Fordi Warren Buffett is one of the most successful investors in history, but the investments of Berkshire are traced by thousands of investors, Wall Street stores and even other hedge fund managers.Legal definition of a hedge fund, be terrible candidates to follow, and the reason why they use high -frequency quantitative trade strategies that are impossible to follow by only looking at their regulatory archives.
Hedgefollow follows all institutional investorsIt submits archives to SEC, whether they are a hedge fund, holding company, etc.
For analysis purposes, however, we collect money for 4 groups:
1- "" hedge fund "
This group of course includes famous hedge funds as managed byMichael BurryInBill Ackman.Inimedid -time also includes all hedge funds, private equity, risk capital and other private funds that submit 13F to SEC.Warren BuffettIt may not be technically a hedge fund.
2- All institutional investors
This includes all funds traced by Hedgefollow.This means that all 'hedge funds' have been described above, together with many large banks, pension funds and all other institutional investors who submit 13F to SEC.
Some major settings belong here, such asJPMorgan Chase,,Morgan Stanley,,UBS Group Ag, enz.
You may notice that some of these funds are very large and can contain thousands of shares in their portfolios.Anor that less, many investors may want to follow them and try to distinguish them whether the internal shares are evaluating that are surpassing/underpunt, based on how they rebalans their portfolios every quarter.
3- Outpresting funds
Hedgefollow grants ratings to funds based on their performance (seeHow we rank hedge funds((Most purchased sharesUnder better definitive means?Most sold?Most are held?And much more that you will find in Hedgefollow.
4-oversproof better definitive means
These are funds that receive a 4+ star classification.Represent the top 20% of all rated funds.
The 4 groups have some overlap and the following diagram helps visualize how they overlap.
Tracking of hedge funds
To make it best to use Hedgefollow as an investment source, it is important to understand how we follow hedge funds.The law requires hedge funds to periodically submit documents that reveal their property of shares, options and some other securities.You need to know about archives: quarterly archives and non-quarter archiving.
Quarterly 13F Archives
Hedge funds that manage more than $ 100 million must submit a list of all their shareholders, including options and some other effects.Detail that they have on December 31, 2022 that they owned, and they have until February 14, 2023 to do this.
13F Report Data
13F archives require funds to describe their property from the end of the quarter.
Non-quarter 13g/13d archives
When a fund buys a large part of the shares in a company (more than 5% of the company shares), they are obliged to publish their purchases in 13G or 13D archives.May not wait until the end of the quarter).Or is the deadline for this kind of passing 10 days from the date of their purchase, but the deadline sometimes depends on the nature of the fund and whether it intends to influence the management of the company is therefore possible to the last activity ofMaintaining hedge funds by following 13G and 13D archives.
When funds buy a large part of a company, they usually have two possible goals:
Passive Investments (13g Investion)
Here the fund believes that the company is a good investment.in this case.
Activist Investments (13D -Invating)
Sometimes the fund believes that the company is underestimated or that it has potential to grow, but needs a small push), the fund is required to reveal this intention.submitted to passive investment).
This is where hedge funds differ from the typical average investor.If you read this, the opportunities that you fall within the passive investors category and hope that business management is competent and ask that the share price will rise.
Activist investors are different.Many hedge funds are not on a huge investment and just wait to see how things will prove.Greenlight Capitalbought a large share inGMMany years ago.Einhorn box, the fund manager, thought it was underestimated (like many frustrated shareholders at that time).Finally, unlocking shareholder value became the shareholders with GM against Einhorn, but the drama between the two brought GM to the spotlight.
Non-KVARTAL SEC Formula 4 Insider Activities
In addition to 13G/13D archives, another non-quarter form has been submitted to SEC by some institutions and individuals.to sec.
In addition to business insiders, every institutional investor (such as hedge funds) that acts as a business insider (eg director) or who owns 10% or more of a share -acted hedge funds in addition to the company's insiders.
Use Hedgefollow to keep track of the latest activity
You can see the latest activity of hedge funds usingHedge fund TrackerThat follows all the SEC archives that we have discussed above.min -tracker.
Weaknesses by following hedge funds
This mini course would not be complete without discussing the weaknesses of following hedge funds.
Archive delay
The most obvious weakness of quarterly 13F archives is the delay.
Modargument:Many hedge funds use long -term investment strategies, it is unlikely that their portfolios will look so different after just 45 days."Column. Final means that we can also distinguish between which resources can probably use long -term strategies.
And in the end, non-quarters games are not undergone by this delay and are often submitted immediately after a transaction.
Only 13F - The ADPPRAPHS have been submitted
Funds do not have to report all their investments.It should only report the property of shares designated as a "13F security".Markets.Some hedge funds that concentrate their investments in development markets in Asia/Europe and this is more difficult to follow.The photo.
Modargument:Many hedge funds focus their investments in the American markets, so 13f securities covers most of their portfolio.Ali Baba,,Toyotaetc.) is actually mentioned at American trade fairs and is referred to as 13F effects.
Only long positions
Only funds are required to report long positions.Made on a different stock.We do not see the short effort that we only see the long position.
Modargument:Many hedge funds use a long -term investment strategy.Then short circuit).
Why is Hedgefollow better?
Following all institutions and insiders
Some sites only follow a few famous hedge funds in the hope of clicking out of their fame.
Because Hedgefollow follows all files, it gives an extensive overview of what settings and insiders do.
Millions of items have been compiled and processed for visualisations/summary to give an exclusive overview that is only available at Hedgefollow.
Topical
Some sites only stimulate three -month archives and therefore miss many transactions.
Hedgefollow follows all SEC archives and ensures that we do not miss a trade.
When you see the portfolio of a fund at Hedgefollow, you will see the newest known portfolio of this fund that reflects the information that has been included in all the archives of this fund so far.
Cleaning huge data from more than 1,000,000+ error
Hedgefollow has corrected since its foundationMore than 1 million errorsIn fund assignments!This is not a number that we throw away there, we have really corrected so many mistakes.
The problem with other sites is that they simply draw information about submitting and dump them on their pages.
Hedgefollow, on the other hand, dozens of massive data cleaning and remediation processes, and our expert data scientists are constantly working on our data quality control.
By 2024, Hedgefollow will start reporting large errors to SEC so that they can be directed to the public.SNR we will roles oursEnterprise Plan, so that funds can see errors in their archives so that they can repair them using changes.
Apples and oranges
Companies can have options, warrants, notes, devices, etc.It is crucial not to mix and match apples with oranges and to collect and process the different types of institutional companies in the right way.
A golden future
We are constantly developing and expanding the platform to add more functions and tools.
