CNR:CC - Trading The Top 10 Stocks From 40 Large Hedge Funds: Trading Update 7/23/2022
- This portfolio strategy uses the quarterly 13F filings to extract 50 consensus stocks from 40 large hedge funds that have more than $3.5 billion Assets Under Management.
- From 1/2/2016 to date, investing in all 50 stocks, equally weighted, would have produced a total return of 84.7%, an active return of -33.2% when compared to SPY’s 117.9%.
- A strategy selecting 10 of the 50 stocks, equally weighted, would have increased the total return to 187.6%, an active return of 69.9% when compared to SPY.
- Here we report the most recent holdings and the trading signals for 7/25/2022.
The 13F filings for Q1-2022 were completed by May 15, hence we updated the universe of the consensus stocks from 40 large hedge fund. The change in holdings is seen in the trading signals for iM-Top50(of 40 Large Hedge Funds), see below.
Research from Barclays and Novus published in October 2019 found that a copycat stock selection strategy that combines conviction and consensus of fund managers that have longer-term views outperformed the S&P 500 by 3.80% on average annually from Q1 2004 to Q2 2019.
Based on that rational, we previously presented two trading models (in Article-1 and Article-2 ) that use the top 50 consensus stocks of 40 Large Hedge Funds (listed in Appendix A below), that historically outperformed the S&P 500. The iM-Top50(from 40 Hedge Funds) model holds all 50 stocks equally weighted and has a low turnover. The iM-Top10(from 40 Hedge Funds) model holds a subset of 10 stocks, also equally weighted, but with higher turnover which is rewarded by improved returns.
The performance simulation, and generation of trading signals, for these strategies is done using the platform Portfolio123 and reported below. For more comprehensive description of the 50 stock universe please refer to here .
Note: This update is published on Seeking Alpha, editor permitting, only if the model has generated trading signals.
Model Performance:
iMarketSignals
Note: The iM-Top10VariableWeight model (green line) is an experimental model. It holds the same stocks as the iM-Top10 model put position weights are adjusted to an inverse function of market capitalization, that is the higher the market cap of the stock the lower the position weight. As a consequence, it is difficult to trade as market capitalization changes with the stock price.
Trade Signals for 7/25/2022
| iM-Top10(of 40 Large Hedge Funds) |
| Ticker |
| Action |
| Shares |
| Name |
| SCHW |
| SELL |
| 421 |
| Schwab (Charles) Corp |
| UNP |
| BUY |
| 136 |
| Union Pacific Corp |
| QCOM |
| Rebalance SELL |
| 28 |
| QUALCOMM Inc. |
| NFLX |
| Rebalance SELL |
| 15 |
| Netflix Inc |
| INCY |
| Rebalance BUY |
| 50 |
| Incyte Corp |
| iM-Top50(of 40 Large Hedge Funds) |
| Ticker |
| Action |
| Shares |
| Name |
| No Trades |
The models trade on the first trading day of the week. Trading signals are published on a weekly basis here on Seeking Alpha (subject to model trading and editor’s acceptance) and on iMarketSignals. Next update on Sunday 7/31/2022
Holdings for iM-Top10(of 40 Large Hedge Funds) as of 7/22/2022
| Current Portfolio 7/22/2022 |
| Cash Flow |
| Ticker |
| Number of Shares |
| Weight |
| Value now |
| Open Date |
| Open Costs |
| Rebal Costs | Return |
| Dividends Received |
| Gain to date |
| ( AAPL ) |
| 188 |
| 10.06% |
| $28,969 |
| 06/13/22 |
| ($24,955) |
| — |
| — |
| $4,014 |
| ( BBWI ) |
| 863 |
| 10.04% |
| $28,885 |
| 02/28/22 |
| ($30,285) |
| ($8,597) |
| $143 |
| ($9,854) |
| ( DHR ) |
| 103 |
| 9.80% |
| $28,206 |
| 06/13/22 |
| ($25,190) |
| — |
| $26 |
| $3,041 |
| ( INCY ) |
| 310 |
| 8.71% |
| $25,079 |
| 07/05/22 |
| ($24,414) |
| — |
| — |
| $665 |
| ( MA ) |
| 76 |
| 9.08% |
| $26,135 |
| 05/02/22 |
| ($27,266) |
| — |
| $37 |
| ($1,094) |
| ( NFLX ) |
| 147 |
| 11.26% |
| $32,405 |
| 05/16/22 |
| ($27,760) |
| — |
| — |
| $4,645 |
| ( QCOM ) |
| 218 |
| 11.64% |
| $33,507 |
| 08/02/21 |
| ($32,635) |
| $2,794 |
| $586 |
| $4,252 |
| ( SCHW ) |
| 421 |
| 9.21% |
| $26,519 |
| 05/16/22 |
| ($27,054) |
| — |
| — |
| ($535) |
| ( TDG ) |
| 50 |
| 10.10% |
| $29,056 |
| 05/23/22 |
| ($28,158) |
| — |
| — |
| $898 |
| ( V ) |
| 140 |
| 10.39% |
| $29,918 |
| 12/07/20 |
| ($30,865) |
| $1,269 |
| $308 |
| $630 |
Holdings for iM-Top50(of 40 Large Hedge Funds) as of 7/22/2022
| Current Portfolio 7/22/2022 |
| Cash Flow |
| Ticker |
| Number of Shares |
| Weight |
| Value now |
| Open Date |
| Open Costs |
| Rebal Costs | Return |
| Dividends Received |
| Gain to date |
| ( AAPL ) |
| 31 |
| 2.59% |
| $4,777 |
| 01/04/16 |
| ($2,109) |
| $3,910 |
| $264 |
| $6,841 |
| ( ADBE ) |
| 14 |
| 3.05% |
| $5,627 |
| 01/04/16 |
| ($2,118) |
| $1,254 |
| — |
| $4,763 |
| ( AMT ) |
| 21 |
| 2.95% |
| $5,452 |
| 01/04/16 |
| ($2,033) |
| ($74) |
| $480 |
| $3,825 |
| ( AMZN ) |
| 49 |
| 3.25% |
| $5,999 |
| 01/04/16 |
| ($1,913) |
| $1,607 |
| — |
| $5,692 |
| ( APP ) |
| 169 |
| 3.31% |
| $6,111 |
| 05/30/22 |
| ($3,147) |
| ($3,790) |
| — |
| ($826) |
| ( BBWI ) |
| 200 |
| 3.62% |
| $6,694 |
| 02/28/22 |
| ($4,533) |
| ($3,658) |
| $17 |
| ($1,480) |
| ( BRK.B ) |
| 20 |
| 3.10% |
| $5,719 |
| 05/23/22 |
| ($4,343) |
| ($1,867) |
| — |
| ($491) |
| ( BSX ) |
| 147 |
| 3.03% |
| $5,604 |
| 02/24/20 |
| ($3,949) |
| ($1,783) |
| — |
| ($128) |
| ( CNI ) |
| 49 |
| 3.07% |
| $5,662 |
| 05/23/22 |
| ($4,410) |
| ($1,167) |
| $23 |
| $108 |
| ( COUP ) |
| 92 |
| 3.33% |
| $6,158 |
| 08/19/19 |
| ($3,549) |
| ($5,909) |
| — |
| ($3,300) |
| ( CRM ) |
| 33 |
| 3.26% |
| $6,022 |
| 05/22/17 |
| ($2,315) |
| ($1,470) |
| — |
| $2,237 |
| ( CRWD ) |
| 31 |
| 3.08% |
| $5,689 |
| 05/26/20 |
| ($4,210) |
| $3,622 |
| — |
| $5,101 |
| ( DASH ) |
| 79 |
| 3.14% |
| $5,803 |
| 05/30/22 |
| ($3,127) |
| ($3,284) |
| — |
| ($609) |
| ( DHR ) |
| 22 |
| 3.26% |
| $6,024 |
| 08/19/19 |
| ($3,547) |
| $983 |
| $54 |
| $3,515 |
| ( DIS ) |
| 58 |
| 3.23% |
| $5,958 |
| 08/24/20 |
| ($5,102) |
| ($1,612) |
| — |
| ($757) |
| ( DOCU ) |
| 87 |
| 3.04% |
| $5,607 |
| 08/24/20 |
| ($5,118) |
| ($6,150) |
| — |
| ($5,660) |
| ( ELV ) |
| 11 |
| 2.74% |
| $5,056 |
| 02/28/22 |
| ($4,503) |
| ($553) |
| $29 |
| $29 |
| ( FATE ) |
| 133 |
| 2.23% |
| $4,128 |
| 02/16/21 |
| ($6,499) |
| ($3,851) |
| — |
| ($6,222) |
| ( FISV ) |
| 44 |
| 2.38% |
| $4,394 |
| 11/18/19 |
| ($3,209) |
| ($1,830) |
| — |
| ($645) |
| ( FOLD ) |
| 396 |
| 2.19% |
| $4,051 |
| 05/23/22 |
| ($4,407) |
| $1,277 |
| — |
| $921 |
| ( GOOGL ) |
| 3 |
| 0.18% |
| $324 |
| 01/04/16 |
| ($2,281) |
| $6,280 |
| — |
| $4,323 |
| ( INCY ) |
| 69 |
| 3.02% |
| $5,582 |
| 02/28/22 |
| ($4,566) |
| ($425) |
| — |
| $591 |
| ( INTU ) |
| 14 |
| 3.29% |
| $6,086 |
| 02/19/19 |
| ($3,523) |
| $661 |
| $112 |
| $3,336 |
| ( KMX ) |
| 60 |
| 3.06% |
| $5,661 |
| 05/24/21 |
| ($5,377) |
| ($1,258) |
| — |
| ($974) |
| ( MA ) |
| 17 |
| 3.16% |
| $5,846 |
| 01/04/16 |
| ($2,088) |
| $577 |
| $144 |
| $4,480 |
| ( MCO ) |
| 20 |
| 3.20% |
| $5,909 |
| 01/04/16 |
| ($2,044) |
| $463 |
| $251 |
| $4,579 |
| ( META ) |
| 33 |
| 3.02% |
| $5,586 |
| 01/04/16 |
| ($2,047) |
| ($2,764) |
| — |
| $775 |
| ( MSFT ) |
| 16 |
| 2.25% |
| $4,166 |
| 01/04/16 |
| ($2,085) |
| $3,882 |
| $356 |
| $6,319 |
| ( NFLX ) |
| 22 |
| 2.63% |
| $4,850 |
| 01/04/16 |
| ($2,092) |
| ($411) |
| — |
| $2,348 |
| ( NOW ) |
| 13 |
| 3.14% |
| $5,808 |
| 11/19/18 |
| ($2,825) |
| $800 |
| — |
| $3,783 |
| ( NVDA ) |
| 35 |
| 3.28% |
| $6,062 |
| 02/24/20 |
| ($3,830) |
| $4,580 |
| $16 |
| $6,828 |
| ( QCOM ) |
| 38 |
| 3.16% |
| $5,841 |
| 08/24/20 |
| ($5,106) |
| $1,028 |
| $220 |
| $1,983 |
| ( RIVN ) |
| 174 |
| 3.06% |
| $5,652 |
| 05/30/22 |
| ($3,131) |
| ($2,555) |
| — |
| ($34) |
| ( SCHW ) |
| 89 |
| 3.03% |
| $5,606 |
| 02/28/22 |
| ($4,555) |
| ($2,494) |
| $11 |
| ($1,432) |
| ( SGEN ) |
| 24 |
| 2.23% |
| $4,119 |
| 01/04/16 |
| ($2,099) |
| $2,907 |
| — |
| $4,928 |
| ( SHOP ) |
| 176 |
| 3.56% |
| $6,574 |
| 11/18/19 |
| ($3,233) |
| ($1,647) |
| — |
| $1,694 |
| ( SNOW ) |
| 37 |
| 2.86% |
| $5,291 |
| 02/16/21 |
| ($6,487) |
| ($1,628) |
| — |
| ($2,825) |
| ( SPGI ) |
| 16 |
| 3.13% |
| $5,791 |
| 05/23/22 |
| ($4,544) |
| ($1,152) |
| $11 |
| $106 |
| ( TDG ) |
| 10 |
| 3.15% |
| $5,811 |
| 01/04/16 |
| ($2,071) |
| $232 |
| $912 |
| $4,884 |
| ( TMO ) |
| 8 |
| 2.43% |
| $4,492 |
| 05/23/22 |
| ($4,446) |
| — |
| $2 |
| $49 |
| ( TMUS ) |
| 40 |
| 2.87% |
| $5,299 |
| 05/23/22 |
| ($4,395) |
| ($905) |
| — |
| ($1) |
| ( TSLA ) |
| 6 |
| 2.65% |
| $4,900 |
| 05/26/20 |
| ($4,098) |
| $10,984 |
| — |
| $11,786 |
| ( TSM ) |
| 64 |
| 2.99% |
| $5,524 |
| 11/22/21 |
| ($6,768) |
| ($210) |
| $61 |
| ($1,392) |
| ( UBER ) |
| 185 |
| 2.33% |
| $4,311 |
| 05/23/22 |
| ($4,358) |
| — |
| — |
| ($48) |
| ( UNH ) |
| 10 |
| 2.82% |
| $5,214 |
| 05/22/17 |
| ($2,274) |
| $2,251 |
| $314 |
| $5,506 |
| ( UNP ) |
| 26 |
| 3.00% |
| $5,548 |
| 05/23/22 |
| ($4,331) |
| ($1,274) |
| $26 |
| ($31) |
| ( V ) |
| 26 |
| 3.01% |
| $5,556 |
| 01/04/16 |
| ($2,046) |
| ($228) |
| $164 |
| $3,446 |
| ( W ) |
| 106 |
| 2.97% |
| $5,486 |
| 11/23/20 |
| ($5,390) |
| ($6,880) |
| — |
| ($6,784) |
| ( WDAY ) |
| 39 |
| 3.12% |
| $5,772 |
| 05/26/20 |
| ($4,213) |
| ($1,882) |
| — |
| ($323) |
Appendix A
Hedge Fund Filers:
- Akre Capital Management LLC
- Alkeon Capital Management LLC
- Altimeter Capital Management, LP
- Aristotle Capital Management, LLC
- Baker Bros. Advisors LP
- Barings LLC
- Calamos Advisors LLC
- Capital International Ltd
- Citadel Advisors LLC
- Coatue Management LLC
- D. E. Shaw & Company, Inc.
- Disciplined Growth Investors Inc
- DSM Capital Partners LLC
- Echo Street Capital Management LLC
- FMR LLC
- Fort Washington Investment Advisors Inc
- GW&K Investment Management, LLC
- Hitchwood Capital Management LP
- Jennison Associates LLC
- King Luther Capital Management Corp
- Kohlberg Kravis Roberts & Company LP
- Lone Pine Capital LLC
- Loomis Sayles & Company LP
- Matrix Capital Management Company, LP
- Meritage Group LP
- Panagora Asset Management Inc
- Perceptive Advisors LLC
- Pinebridge Investments, LP
- Redmile Group, LLC
- Renaissance Technologies LLC
- Riverbridge Partners LLC
- Ruane, Cunniff & Goldfarb LP
- Steadfast Capital Management LP
- TCI Fund Management Ltd
- Tiger Global Management LLC
- Verition Fund Management LLC
- Viking Global Investors LP
- Westfield Capital Management Company LP
- Whale Rock Capital Management LLC
- Winslow Capital Management, LLC
For your information: Previous versions of this article were posted in either …/investing-strategy/portfolio-strategy or …/stock-ideas/quick-picks. We have noticed that when this article is posted in portfolio-strategies the page views are double to treble than those in quick-picks. Regards Georg Vrba
For further details see:
Trading The Top 10 Stocks From 40 Large Hedge Funds: Trading Update 7/23/2022