CovOps
Location : Ether-Sphere Job/hobbies : Irrationality Exterminator Humor : Über Serious
| Subject: Knowing what stocks are held by top hedge fund managers is a useful source of investment ideas Sat Mar 26, 2011 8:27 pm | |
| But the data is dated, limited and can be misleading, so investors shouldn’t rely on it too much.
“There is indeed weak — but profitable — information in the holdings data,” said Ted Aronson, founder of investment firm Aronson+Johnson+Ortiz. “As with most stock market information, it is noisy and sloppy, but there is insight to be gleaned.”
Yet even with $20 billion in assets and 38 employees, AJO struggles to gather profitable information from hedge fund holdings, so there’s “not much left for the ‘great unwashed,’” Aronson noted.
ANCAPS: ANARCHO-CAPITALISTS |
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