What is a 13F?
Form 13F-HR is the quarterly holdings report that large institutional investment managers file with the SEC under Section 13(f) of the Securities Exchange Act. It lists each qualifying position by issuer, CUSIP, number of shares and market value at quarter end. It is the only regular public window into what hedge funds and other large managers own, which is why investors watch it so closely.
Who has to file
Any institutional investment manager with investment discretion over at least $100 million in 13(f) securities must file. That includes hedge funds, mutual fund families, banks, insurance companies, pension managers and some corporations. SignalX tracks the 13F filings of 132 managers that filed in the last 200 days, from Berkshire Hathaway and Bridgewater to BlackRock and Vanguard, about 7.6 million positions in all.
The 45-day lag
- Quarter endsPositions measured on the last day≤ 45 days
- 13F-HR on EDGAROften filed close to the deadlinedaily
- Consensus updatedCompared with the prior quarter
The lag is the single most important thing to understand about 13F data. A filing on November 14 describes the portfolio on September 30. By then a fast-trading fund may have sold the position entirely. 13Fs are most useful for funds that hold positions for years, and least useful for high-turnover quantitative managers.
What's in, what's out
Included
- US-listed common stocks
- ETFs and closed-end funds
- Listed puts and calls (flagged PUT or CALL)
- Convertible bonds on the SEC's 13(f) list
Not included
- Short positions
- Cash, bonds and most debt
- Most foreign-listed shares
- Positions granted confidential treatment, until released
Shares, not dollars
The most common mistake with 13F data is comparing market values between quarters. If a fund held the same number of shares and the stock rose 30%, the 13F value rises 30% too, and a naive comparison calls it buying. The fix is to compare share counts.
Fund A
HoldPrice +30%, shares unchanged
Fund B
AddedPrice flat, shares +30%
SignalX classifies every position change by shares: new, added (more than 5% more shares), trimmed, exited or held. Estimated dollars bought or sold are then the share change times the current price, which removes the price effect.
How to read a 13F
- Start with the biggest positions. The top ten often make up most of a concentrated fund's portfolio. Their weights show conviction.
- Look for new positions. A stock that appears for the first time, especially at 2% or more of the portfolio, is a deliberate bet.
- Note full exits. A position that disappears tells you the fund is done with it, at least as of quarter end.
- Separate options from stock. A large call position is a different bet from shares, and a put may be a hedge.
- Check turnover. A fund that replaces half its portfolio every quarter is harder to follow with 45-day-old data.
From one fund to many
One fund buying a stock is an opinion. Several respected funds buying it in the same quarter is a pattern. Our guide on how to track hedge fund holdings shows how to pick the funds worth following and read consensus across them, and 13D vs 13G covers the faster filings large holders make when they cross 5%.