{"id":81942,"date":"2015-12-04T10:28:09","date_gmt":"2015-12-04T15:28:09","guid":{"rendered":"http:\/\/countingpips.com\/?p=81942"},"modified":"2015-12-04T07:36:47","modified_gmt":"2015-12-04T12:36:47","slug":"decipher-the-hedge-fund-code","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2015\/12\/decipher-the-hedge-fund-code\/","title":{"rendered":"Decipher the Hedge Fund Code"},"content":{"rendered":"
December 4, 2015<\/div>
\r\n<\/div><\/div>

By WallStreetDaily.com<\/u><\/a> \"13F<\/p>\n

By Jonathan Rodriguez<\/a>, Senior Analyst<\/em><\/p>\n

Have you ever wished you could see inside the mind of a billionaire investor?<\/p>\n

Well, four times a year, you can.<\/p>\n

At the end of each quarter, hedge fund managers are required to report their portfolios to the public in a Securities and Exchange Commission (SEC) filing called a 13F.<\/p>\n

These 13F filings<\/a> offer investors a golden opportunity to see how the \u201csmart money\u201d trades.<\/p>

\r\n
\r\n

Free Reports:<\/p><\/div>\r\n

\r\n

<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

\r\n
\r\n
\r\n

<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

\r\n<\/div>\r\n

\r\n
<\/div>\n

Today, I\u2019m going to show you how to read a 13F and invest alongside some of Wall Street\u2019s brightest minds.<\/p>\n

Cracking the Code<\/h2>\n

Every institutional manager who oversees $100 million or more in assets is required to file a 13F. And all of these 13Fs are available for free on EDGAR<\/a>, the SEC\u2019s web search portal. Provided in both HTML and XML form, the filing lists all of the fund\u2019s long equity and option positions.<\/p>\n

First, enter the name of a hedge fund in the \u201cCompany Name\u201d search box. Once you\u2019ve located the fund, filter out the 13Fs by specifying the filing type.<\/p>\n

With filing in hand, you can determine a fund\u2019s positions and their dollar value. From the value of each position, you can calculate how a fund\u2019s portfolio is allocated by sector. As you know, portfolio diversification is the key to success in today\u2019s unpredictable market.<\/p>\n

Finally, you can compare a previous quarter\u2019s 13F to a recent filing and discover the firm\u2019s newest buys and sells.<\/p>\n

For example, Warren Buffett\u2019s Berkshire Hathaway fund held $1.3 billion in equities as of last quarter. Buffett\u2019s top three holdings were Wells Fargo & Co.<\/strong> (WFC<\/a>), The Kraft Heinz Co.<\/strong> (KHC<\/a>), and The<\/strong> Coca-Cola Co.<\/strong> (KO<\/a>). At present, Buffett\u2019s portfolio is overweight financials and consumer staples.<\/p>\n

Kraft was Buffett\u2019s biggest new buy last quarter, and it now represents 18% of his total portfolio. Buffett also sold off his entire Viacom Inc.<\/strong> (VIAB<\/a>) and DirecTV Inc.<\/strong> (DTV<\/a>) positions, which were worth about 2.7% of his portfolio.<\/p>\n

All of this information was obtained from just two 13Fs!<\/p>\n

A Shortcut to Hedge Fund Profits<\/h2>\n

If you\u2019re not into performing these calculations by hand, you\u2019re in luck, as there are several websites that take care of all the legwork for you.<\/p>\n

For instance, Whale Wisdom<\/a> tracks hundreds of hedge funds<\/a> and provides analysis on several years of 13Fs. It also provides 13F back testing and even scores funds based on performance.<\/p>\n

Direxion Investment\u2019s iBillionaire Index also follows some of the most successful billionaire hedge fund managers in the world.<\/p>\n

Rebalanced every quarter, this equal-weighted long-only index holds 30 of the most compelling investments. For retail investors, it even offers a low expense exchange-traded fund, Direxion iBillionaire ETF<\/strong> (IBLN<\/a>), which mirrors the index.<\/p>\n

However, there\u2019s one glaring caveat to using 13Fs. That is, filers aren\u2019t required to disclose their short positions. If a fund has hedged its portfolio with any short sales, you won\u2019t be able to see them.<\/p>\n

Luckily, the majority of hedge fund profits come from their long positions.<\/p>\n

Now that you know how to use a 13F, I\u2019m going to go one step further. Next week, I\u2019ll show you which billionaires to follow heading into the New Year. Until then\u2026<\/p>\n

Good investing,<\/p>\n

Jonathan Rodriguez<\/p>\n

The post Decipher the Hedge Fund Code<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com By Jonathan Rodriguez, Senior Analyst Have you ever wished you could see inside the mind of a billionaire investor? Well, four times a year, you can. At the end of each quarter, hedge fund managers are required to report their portfolios to the public in a Securities and Exchange Commission (SEC) filing called […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-81942","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/81942","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=81942"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/81942\/revisions"}],"predecessor-version":[{"id":81964,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/81942\/revisions\/81964"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=81942"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=81942"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=81942"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}