Hedge Fund Pages

How to use the Hedge Fund Activity Tool to Track Institutional Buying and Selling

Hedge Funds are large institutional investors that usually hold sizable stakes in publicly traded companies. Hedge funds undertake complex investing strategies and thus are able to generate higher returns by taking on higher risks. By virtue of their large investments and outsized stakes in some companies, hedge fund owners often have a seat on the company’s boards and/or are one of the driving forces for the important decisions made at the management level.  

Given that, wouldn’t it be interesting to know which company stocks hedge funds are buying or selling, as a clue to understanding how the company is performing? Well, we at TipRanks believe that Hedge Fund Managers often know best about company happenings and can be some of the best investment opinions to follow.  

Thus, TipRanks accumulates the hedge fund trading activity of stocks in a simple, understandable format and gives you the opportunity to make informed decisions based on their trading activities.  

To access the Hedge Funds Trading Activity tool on TipRanks, first open a company’s page for which you want to see the hedge fund activity. On the navigation bar on the left, you will see the Hedge Funds tab. Click on the tab to view the page.  

On the page, you will find the Hedge Fund Confidence Signal that displays the sentiment on the stock, based on the buy and sell activity of several hedge funds in the recent quarter. The sentiment will be one of the following: Very Positive/Positive/Neutral/Negative/Very Negative. If most hedge funds are increasing their holdings of the stock, the signal will be on the positive side. On the other hand, if hedge funds are dumping the stock, the signal will be on the negative side. It will be neutral in cases of mixed trading activity.  

Additionally, you will see a graphical representation of the hedge fund activity on a quarterly basis, to see how hedge funds have behaved in the past with respect to the stock. By studying the graph, you can also delve deeper into why hedge funds may have changed their position in the company over the quarters, from positive to negative, or vice versa. Was it due to some important structural changes, earnings misses, etc.? This gives you the much-needed information to understand a stock’s future trajectory.  

Finally, you will see a list of all the hedge fund buying/selling activity on the stock starting from the most recent. The list includes the name of the Hedge Fund Manager, Star Ranking, name of the Firm, Activity (New/Added/Not Changed/Reduced), Holding Change (% terms), Value Reported ($ terms), % of Portfolio, and the option to Follow the hedge fund. You can click on any of the hedge fund managers’ names to further study their profiles and trading activities in detail. You can also sort the list as per Activity or Star Ranking.  

How to Use the Top Hedge Fund Managers Tool

Hedge Fund Managers are well-established investors who have long years of experience and investment acumen. They are also able to trade in larger amount of money and their related exposure, that an average investor may be missing. Hedge fund managers are known to take on added risk to earn exponential returns. Although an average investor is unlikely to take such risky bets, you can learn from the hedge fund managers’ trades and try to emulate them. Thus, it could be interesting to learn about a hedge fund manager’s trading activities to understand which sectors they are currently favoring, and which companies, in particular, are being loaded up on or dismissed by these giant investment firms.  

To navigate to the top-performing hedge fund managers page, go to Experts – Top Hedge Fund Managers from the top menu on the dashboard. On this page, you will find a list of the hedge fund managers in the descending order of their Star Rankings. 

The page lists the Rank, Name of the hedge fund manager, Hedge Fund Name, Assets Under Management (AUM in $ billions), Portfolio Gain (% terms), Sharpe Ratio of the hedge fund manager, Average Return (% terms), Followers on TipRanks, and the option to Follow them.  

By default, the list is sorted based on the hedge fund managers’ rankings. You can choose to sort as per the names of the Hedge Fund or the Managers, or their AUMs, portfolio gains, and so on. Further, you can click on any hedge fund manager’s name to navigate to their profile pages and study them in detail. It could be wise to study and follow those managers who have a proven track record of earning impressive returns with a high success rate.  

Just as with other Experts, TipRanks accumulates the trading patterns of hedge fund managers and ranks them based on three broad parameters: 

Success rate – the number of accurate recommendations, for one year 

Average return – the average return generated for all transactions, for one year 

Statistical significance – experts with more recommendations are ranked higher

How to Use the Hedge Fund Profile Pages in Your Investment Strategy

Hedge fund managers are hailed as the Gurus of the financial investment world. Their years of experience, access to a larger pool of funds, wide array of investment strategies, and a thorough knowledge of almost all sectors make them some of the best people to follow. Of course, not all hedge fund managers succeed at their stock-picking activities, but several are well-known on Wall Street for their investment acumen and the enormous returns they generate on trades. To make it easier for you to decide whom to trust, TipRanks compiles a list of the top-performing hedge fund managers and gives you details about their historical success rates and returns generated.  

On a hedge fund manager’s profile page, you can find the firm that they work for and their Portfolio Gain since June 2013. You can also see their Sharpe Ratio, which is defined as your portfolio’s returns divided by your portfolio’s risk. A ratio above “1” means the portfolio manager has earned higher returns compared to the risk of the portfolio.  

Moreover, you will see the Net Worth of the Hedge Fund, which is the assets under management (AUM) of the firm as reported to the Securities and Exchange Commission (SEC) that the portfolio manager oversees. Plus, you can see the Average Return Earned in the Last 3 Years (Annualized), the Last 12 months, and Since Last Filing date. Further, you will see the Portfolio Breakdown by Sector, which displays the sectors in which the AUM is distributed.  

Moreover, you can see the details of each company to which the hedge fund manager has exposure, as per the latest SEC filing. Along with a graphical representation, you will see the Company Name, the latest Action taken (New/Added/Not Changed/Reduced), the company’s Sector, the stock’s Average Price in Last Quarter, Gain/Loss Since Last Filing (% terms), Holding Change (% terms), Value Reported ($ amount), and % of Portfolio.  

Further down on the page, you will see the Measured Performance, which displays the hedge fund’s performance vis-à-vis the S&P 500 (SPX) index, and Average Hedge Fund Portfolio. This is followed by a general FAQ section on the particular hedge fund, mostly based on queries related to the hedge fund profile page.  

To navigate to a hedge fund managers profile page, go to Experts – Top Hedge Fund Managers, and there you will find a list of all hedge fund managers that TipRanks tracks. Clicking on a particular hedge fund manager’s name opens their profile page. Alternatively, if you know the name of the hedge fund manager that you wish to study, you can type his/her name in the Search Bar on the top left corner of the page and select the name from the dropdown window. Similarly, you can navigate to a hedge fund manager’s profile page by going to a company’s Hedge Funds Tool and clicking on the Hedge Fund Manager’s Name from the list of hedge fund trading activities.   

How We Update Hedge Fund Pages

TipRanks accumulates the data of thousands of hedge funds and breaks it down into simple easy-to-read formats to make it easy for our customers to understand. TipRanks updates the Hedge Fund Pages every quarter, by scanning regulatory filings on a timely basis through its top-notch artificial intelligence (AI) technology.    

Hedge funds that invest over $100 million in equity are required to submit a form 13F to the SEC within 45 days after the end of each quarter. TipRanks automatically retrieves all these filings from the public EDGAR database and uses proprietary algorithms to backtrack performance.  

By regularly updating the hedge fund database on the platform, TipRanks ensures that you have access to the latest information on the buying and selling activities of these firms and can customize your portfolios intelligently.