Trading The Top 10 Stocks From 40 Large Hedge Funds: Trading Update 4/30/2022

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Georg Vrba
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Summary

  • 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.
  • After the Q4-2021 13F filings the consensus holdings were updated, 7 stocks were removed and 7 added from the universe now holds 48 stocks.
  • From 1/2/2016 to date, investing in all 50 stocks, equally weighted, would have produced a total return of 99.4%, an active return of -26.8% when compared to SPY’s 126.3%.
  • A strategy selecting 10 of the 50 stocks, equally weighted, would have increased the total return to 187.4%, an active return of 61.1% when compared to SPY.
  • Here we report the most recent holdings and the trading signals for 5/2/2022.

Book with name hedge fund and trading data.

designer491/iStock via Getty Images

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 rationale, 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 are done using the platform Portfolio123 and reported below. For a more comprehensive description of the 50 stock universe, please refer to here.

Model Performance:

Relartive Performance

iMarketSignals.com

Note: iM-Top10VariableWeight (of 40 Large Hedge Fund) model will be released soon.)

Trade Signals for 5/2/2022

iM-Top10 from 40 Large Hedge Funds
Action Ticker Shares Name
SELL TDG 46 TransDigm Group Incorporated
BUY MA 76 Mastercard Incorporated
Rebalance SELL BBWI 71 Bath & Body Works, Inc.
Rebalance BUY CHTR 9 Charter Communications, Inc.
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 5/8/2022.

Holdings for iM-Top10 (of 40 Large Hedge Funds) as of 4/29/2022

Current Portfolio 4/29/2022 Cash Flow
Ticker Number of Shares Weight Value now Open Date Open Costs Rebal Costs | Return Dividends Received Gain to date
(BBWI) 602 11.08% $31,840 02/28/22 ($30,285) ($1,257) — $299
(CHTR) 56 8.35% $23,995 04/18/22 ($30,231) — — ($6,235)
(DHR) 110 9.61% $27,624 04/04/22 ($31,931) — — ($4,307)
(INCY) 361 9.42% $27,061 02/28/22 ($30,799) $7,377 — $3,639
(MCO) 87 9.58% $27,534 04/11/22 ($29,208) — — ($1,674)
(MSFT) 111 10.72% $30,805 04/18/22 ($31,162) — — ($357)
(MU) 445 10.56% $30,345 04/18/22 ($31,676) — — ($1,332)
(QCOM) 218 10.60% $30,452 08/02/21 ($32,635) $2,794 $423 $1,035
(TDG) 46 9.52% $27,361 03/21/22 ($30,118) — — ($2,757)
(V) 140 10.38% $29,838 12/07/20 ($30,865) $1,269 $255 $498

Holdings for iM-Top50 (of 40 Large Hedge Funds) as of 4/29/2022

Current Portfolio 4/29/2022 Cash Flow
Ticker Number of Shares Weight Value now Open Date Open Costs Rebal Costs | Return Dividends Received Gain to date
(AAPL) 22 1.74% $3,468 01/04/16 ($2,109) $5,187 $259 $6,805
(ADBE) 10 1.99% $3,960 01/04/16 ($2,118) $2,765 — $4,607
(ALGN) 10 1.45% $2,899 11/22/21 ($6,726) — — ($3,827)
(AMT) 18 2.18% $4,338 01/04/16 ($2,033) $731 $461 $3,498
(AMZN) 2 2.49% $4,971 01/04/16 ($1,913) $2,037 — $5,096
(ANTM) 10 2.52% $5,019 02/28/22 ($4,503) — $13 $529
(APP) 91 1.74% $3,472 08/23/21 ($6,110) $452 — ($2,186)
(BBWI) 85 2.25% $4,496 02/28/22 ($4,533) — — ($37)
(BSX) 87 1.84% $3,664 02/24/20 ($3,949) $700 — $415
(CHTR) 8.1 1.75% $3,487 01/04/16 ($2,133) $869 — $2,223
(COUP) 37 1.60% $3,193 08/19/19 ($3,549) ($1,823) — ($2,179)
(CRM) 21 1.85% $3,695 05/22/17 ($2,315) $806 — $2,186
(CRWD) 28 2.79% $5,565 05/26/20 ($4,210) $4,306 — $5,661
(DASH) 52 2.12% $4,234 05/24/21 ($5,623) ($281) — ($1,669)
(DHR) 20 2.52% $5,023 08/19/19 ($3,547) $1,596 $50 $3,123
(DIS) 35 1.96% $3,907 08/24/20 ($5,102) $902 — ($293)
(DOCU) 43 1.75% $3,483 08/24/20 ($5,118) ($2,553) — ($4,188)
(FATE) 120 1.72% $3,427 02/16/21 ($6,499) ($3,271) — ($6,343)
(FB) 20 2.01% $4,009 01/04/16 ($2,047) ($191) — $1,772
(FIS) 50 2.49% $4,958 08/19/19 ($3,476) ($3,323) $147 ($1,695)
(FISV) 56 2.75% $5,484 11/18/19 ($3,209) ($2,989) — ($715)
(GOOGL) 3 3.43% $6,847 01/04/16 ($2,281) — — $4,566
(INCY) 67 2.52% $5,022 02/28/22 ($4,566) — — $456
(INTU) 12 2.52% $5,025 02/19/19 ($3,523) $1,654 $106 $3,261
(KMX) 47 2.02% $4,032 05/24/21 ($5,377) — — ($1,345)
(MA) 16 2.92% $5,814 01/04/16 ($2,088) $1,075 $139 $4,940
(MCO) 17 2.70% $5,380 01/04/16 ($2,044) $1,364 $239 $4,939
(MSFT) 20 2.78% $5,550 01/04/16 ($2,085) $2,753 $347 $6,565
(MTCH) 41 1.63% $3,245 02/28/22 ($4,589) — — ($1,344)
(MU) 51 1.74% $3,478 02/28/22 ($4,527) — $5 ($1,044)
(NFLX) 11 1.05% $2,094 01/04/16 ($2,092) $1,762 — $1,764
(NOW) 7 1.68% $3,347 11/19/18 ($2,825) $3,684 — $4,206
(NVDA) 20 1.86% $3,709 02/24/20 ($3,830) $7,494 $15 $7,388
(PYPL) 34 1.50% $2,990 02/21/17 ($2,209) $2,142 — $2,922
(QCOM) 30 2.10% $4,191 08/24/20 ($5,106) $2,448 $197 $1,730
(RIVN) 104 1.58% $3,145 02/28/22 ($4,854) ($1,446) — ($3,155)
(SCHW) 54 1.80% $3,582 02/28/22 ($4,555) — — ($974)
(SGEN) 33 2.17% $4,323 01/04/16 ($2,099) $1,661 — $3,886
(SHOP) 7 1.50% $2,988 11/18/19 ($3,233) $2,545 — $2,300
(SNAP) 130 1.86% $3,700 11/22/21 ($6,427) — — ($2,727)
(SNOW) 17 1.46% $2,914 02/16/21 ($6,487) $1,820 — ($1,752)
(TDG) 6 1.79% $3,569 01/04/16 ($2,071) $2,710 $912 $5,120
(TSLA) 6 2.62% $5,225 05/26/20 ($4,098) $10,984 — $12,110
(TSM) 36 1.68% $3,345 11/22/21 ($6,768) $2,419 $44 ($960)
(UNH) 9 2.30% $4,577 05/22/17 ($2,274) $2,953 $303 $5,559
(V) 26 2.78% $5,541 01/04/16 ($2,046) $25 $156 $3,676
(W) 43 1.66% $3,308 11/23/20 ($5,390) ($2,894) — ($4,975)
(WDAY) 20 2.07% $4,134 05/26/20 ($4,213) $1,141 — $1,062

Appendix A

Hedge Fund Filers:

  1. Akre Capital Management LLC
  2. Alkeon Capital Management LLC
  3. Altimeter Capital Management, LP
  4. Aristotle Capital Management, LLC
  5. Baker Bros. Advisors LP
  6. Barings LLC
  7. Calamos Advisors LLC
  8. Capital International Ltd
  9. Citadel Advisors LLC
  10. Coatue Management LLC
  11. D. E. Shaw & Company, Inc.
  12. Disciplined Growth Investors Inc
  13. DSM Capital Partners LLC
  14. Echo Street Capital Management LLC
  15. FMR LLC
  16. Fort Washington Investment Advisors Inc
  17. GW&K Investment Management, LLC
  18. Hitchwood Capital Management LP
  19. Jennison Associates LLC
  20. King Luther Capital Management Corp
  21. Kohlberg Kravis Roberts & Company LP
  22. Lone Pine Capital LLC
  23. Loomis Sayles & Company LP
  24. Matrix Capital Management Company, LP
  25. Meritage Group LP
  26. Panagora Asset Management Inc
  27. Perceptive Advisors LLC
  28. Pinebridge Investments, LP
  29. Redmile Group, LLC
  30. Renaissance Technologies LLC
  31. Riverbridge Partners LLC
  32. Ruane, Cunniff & Goldfarb LP
  33. Steadfast Capital Management LP
  34. TCI Fund Management Ltd
  35. Tiger Global Management LLC
  36. Verition Fund Management LLC
  37. Viking Global Investors LP
  38. Westfield Capital Management Company LP
  39. Whale Rock Capital Management LLC
  40. Winslow Capital Management, LLC

This article was written by

Georg Vrba profile picture
Georg Vrba
7.87K Followers
Georg Vrba is a professional engineer who has been a consulting engineer for many years. In his opinion, mathematical models provide better guidance to market direction than financial "experts." He has developed financial models for the stock market, the bond market, yield curve, gold, silver and recession prediction, most of which are updated weekly at http://imarketsignals.com/.
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Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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