🐋How to Read 13F Holdings Reports?

Introduction to 13F Holdings Reports

Investors, especially institutional ones, have access to information about their portfolios that is regularly reported to the SEC via Form 13F. These reports contain data about stocks and other securities held by large investors, such as funds and hedge funds. This allows retail investors to 'read' the market intelligence and strategies of major players.

Quarterly Cycle of 13F Reporting

Form 13F is filed quarterly. Reports must be submitted 45 days after the end of the quarter. During this time, investors may seek to understand trends in the portfolios of leading institutions. For example:

• Q1 (January - March): Report submitted by mid-May
• Q2 (April - June): Report submitted by mid-August
• Q3 (July - September): Report submitted by mid-November
• Q4 (October - December): Report submitted by mid-February

Difference Between 13D and 13G

Form 13D is used when an investor acquires more than 5% of shares in a given company and intends to influence the management or strategy of the firm. Conversely, Form 13G is designated for investors who exceed the same share limit but do not intend to influence the company. For example, Berkshire Hathaway filed a 13D form when Warren Buffett increased his stake in ČEZ to more than 5%.

Key Terms in 13F Holdings

• New Position: This definition is used when a fund first records shares of a given company in the quarterly report.
• Increased: This term is used when a fund increases its stake in an existing position.
• Sold Out: This occurs when a fund sells all shares of a given company and holds no position.

Example: The Q4 2024 report shows that Warren Buffett acquired a new position in AAPL and increased his stake in MSFT by 20%.

How to Use 13F Holdings Reports in QMA?

In QMA, you can utilize features such as:

• 5-pillar score: Helps you compare companies based on selected criteria.
• Smart Money: Allows you to track what large investors are doing.
• Screener: Allows you to filter stocks based on various settings.
• QMA-Picks: Tracks stocks recommended by the QMA team.
• Portfolio-health: Helps evaluate the health of your own portfolio.

Where to Find This in QMA

You can find 13F holdings reports in the Smart Money section on the QMA platform, where you can monitor the activity of large investors and assess potential investment strategies based on this data.

Conclusion

Absorbing and interpreting 13F holdings reports can be a powerful tool in your investment arsenal. By utilizing the tools and resources QMA offers, you can better understand market movements and navigate the world of investing more effectively.

Keep in mind that investing always carries risks, and thorough research is key to successful investing.