‘Tis the 13F Season
Another earnings season has come and gone.
From Wall Street to Main Street, investors have digested the reports, updated their models, bought the winners, and sold the losers.
But what many investors don’t know is that another key reporting period follows earnings season.
Typically, hedge funds – home to some of the sharpest, most successful minds in the financial markets – keep their trading strategies closely guarded.
But four times a year, every institutional investment manager overseeing $100 million or more in assets is required by law to open the books to the public.
This Securities and Exchanges Commission (SEC) mandated filing is called a 13F, and it’s a gold mine of wealth-building knowledge.
That is, if you know how to use it…
Your Sneak Peek Into the Black Box
Put simply, a 13F outlines all of a hedge fund’s long stock and options positions from the previous quarter.
Fund managers have to file a 13F with the SEC within 45 days of the previous quarter’s end. That means, with this form in hand, investors can determine where the “smart money” is investing.
Of course, we all know that many hedge funds haven’t been the smartest investors this year.
Direxion Investments tracks the performance of 16 of the world’s biggest funds in its iBillionaire Index.
Of these 16, only three have posted positive returns this year. And of these three winning funds, only two managers have beaten the market.
But not all funds are created equal.
And over the next few weeks, I’m going to show you how to dissect a 13F and invest right alongside the most successful hedge funds.
I’ll also break down the mistakes made by the losing funds so that you can avoid value traps and properly manage your risk.
Best of all, I’ll show you how to compress your investment timelines. You’ll zip in and out of trades like a hedge fund master in no time.
So stay tuned, and I’ll make sure you’re armed with some hedge fund wisdom as you prepare for 2016 – and beyond.
On the hunt,