Large institutions and hedge funds are required to file special quarterly documents (13F) with the SEC.
This keeps everything smooth and transparent. And it tends to give investors and traders a breakdown of which stocks hedge funds are buying.
I just used the latest reports to find out which funds made the biggest gains in the third quarter, which stocks all the hedge funds are buying.
And let’s just say, I like what I saw…
What the Hedge Funds Are Buying
The Securities and Exchange Commission’s (SEC) Form 13F is a quarterly report that all institutional investments managers with at least $100 million in capital have to file. It gives investors and traders an idea of what stocks hedge funds are buying and holding.
If you’re thinking to yourself “Roger, we’re already at the end of November. Why should we care about the stocks hedge funds bought in September?”
Well, let me explain…
Sometimes major hedge funds end up holding (and buying) the same stocks for six months… nine months… or even an entire year.
In fact, I found Sea Ltd (NYSE: SE) this way. Hedge funds were buying it aggressively when it was near $56 a share, and now it’s trading at nearly $180 a share.
I typically look at the top 20 fastest gaining hedge funds, or see which ones gained the most in the previous quarter. Then I organize it by the top five stocks each hedge fund bought to see if there are any similarities between them.
In a nutshell, we’re looking at stocks multiple hedge funds held during the same period of time. I do this to find stocks that might not have been on my radar otherwise.
So let me walk you through how I sift through this data, and show you what the fastest gaining hedge funds are buying right now.
Check out today’s video and leave a comment in the section below. Do you usually pay attention to 13F filings? If not, will you start after hearing what I had to say? What other data and reports do you like to look at when deciding which stocks to trade? I look forward to reading all your comments.
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