Beware the Temptation to Follow Hedge Funds’ 13F Filings

Scrutinize the 13F filings, but don’t treat them as a valuable tool that will enable you to invest — or perform — like the smart money set

Investors and journalists like to scrutinize — and, for investors, mimic — the quarterly filings of hedge fund stock holdings when they are disclosed to regulators, even though they are generally filed 45 days after the quarter’s end. After all, for most observers, this is as much information and insight they will ever get into a hedge fund’s portfolio.

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