For Your Consideration
While watching an enjoyable Orioles victory over the New York Yankees last night, I sifted through the latest 13H filings. When I started writing in addition to managing investments, only a handful of folks tracked these filings with the Securities and Exchange Commission. Today, they are micro-analyzed all over the Internet. I have even heard discussion of an exchange-traded fund based on the combined buying and selling of the largest and most prominent investors and hedge fund managers who file these forms. Millions of investors hope to use these filings to emulate the strategies of Warren Buffet, David Tepper, Bill Ackman and David Einhorn, to name a few.
But I will let you in on a little secret: You really cannot replicate their strategies. You have no idea when during the quarter they bought the stocks. If they are executing an arbitrage strategy using the debt or derivatives of the stocks, there is no way for you to know this. Did they buy on a breakout or a breakdown? Was the market up or down that day? Unless you live next door and can get them to talk over a few glasses of wine, you will never know....433 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.