New 2Q Favs for Hedge Funds

August 25, 2020 James Heinsman Hedge Fund News

Now that second-quarter SEC 13F filings are available for scrutiny, the public can see where experienced investors put their money in April, May, and June.

There were a few surprises, like Berkshire Hathaway retreating from many positions and finding a safe haven in Barrick Gold. But in general, a look-see at where the investing greats put their bets have yielded some insights into trends.

RBC Capital Markets looked at 337 13F s and observed that investors still like companies in tech, internet, media, and telecom. There were also some movement towards health care stocks.

Evaluated on a dollar basis, the following are the most popular new companies that investors placed their bets on: eBay; JPMorgan Chase; Service Now; PayPal; and T-Mobile US. These companies took the place of Allergan, which was bought by AbbVie, and is still among the 20 favorites; Blogen; Bristol-Myers Squibb; Johnson & Johnson; and Merck.

Investors, as usual, are warned that scrutiny of 13Fs must be done with caution and should not be taken as investment advice. In addition, the forms are released by the SEC 45 days after the last day of the quarter, so the crucial importance of timing is no longer in play.

Yet, the reports can be helpful to investors who already know a fund manager’s general investing strategy. They can help to understand the view of fund managers, and taken together, can reveal an insight into broader market trends.

Berkshire Hathaway, eBay, JPMorgan, SEC 13F,

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