In case you missed it, institutional funds recently released their third quarter earnings in their 13F forms filed with the Securities and Exchange Commission (SEC).
The SEC requires investors with more than $100 million in assets to file these forms within 45 business days after the close of each quarter. 13Fs can be useful for retail investors because institutional fund managers are professionals who often have decades of experience, additional resources, and a strong understanding of what makes a retail business work.
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While investors should keep up with fund managers, they should not follow them in their investment thinking. Professional investors often invest large sums of money seeking returns over a smaller period of time than retail investors. Additionally, some of these funds are large so you never know who is pulling the buy or sell button. And then, yes, even the best is sometimes not the best, so make sure your performance is right.
That said, following fund managers can be a good way to find new investment ideas and focus your thesis on existing positions in your portfolio. In recent months, several funds led by billionaire investors have dived into the company’s spin-off of a company that trades on Nasdaq The stock exchange has struggled this year but offers a healthy dividend. Could it be something else? Let’s take a look.
The market has been on a two-year bull run, and S&P 500 The index seems to hit new highs every day and is close to 27% this year, so many stocks have done well. However, it is a leader in digital audio History of Sirius XM Holdings (NASDAQ: SIRI) down more than 52% this year. Sirius has been on a rollercoaster ride, and investors seem to have left stocks for dead, hitting lows not seen in five years.
While the market seems to have forgotten about it, the famous billionaires are gathering. Warren Buffett’s company. Berkshire Hathaway he has been buying shares all year. Buffett currently holds more than $2.9 billion in Sirius, which is about 1% of Berkshire’s $300 billion stake.
In the third quarter, Ken Griffin’s Citadel Advisors acquired a new position in common shares, valued at more than $59 million. Griffin handled calls and made layups in the second quarter.
Sirius has struggled in recent years as debt piled up and subscribers declined. However, the company recently split from Liberty Media and did a reverse 1-for-10 stock split. The moves are designed to increase the stock price and simplify the company’s structure, both of which can help attract institutional interest.