In a recent interview with BNN‘s Frances Horodelski, the cofounder and editor of Insider Monkey, Meena Krishnamsetty, has provided some aspects of our investment strategy and discussed about the insights that retail investors can get by following the activity of hedge funds through 13F filings. The discussion is particularly important now, since we have just closed the latest round of 13F filings, during which institutional investors revealed their equity portfolios for the end of the second quarter of the year.
Meena pointed out that 13Fs present a great value for individual investors mainly because in a way, these filings allow individual investors to benefit from the huge resources that hedge funds have. Hedge funds can conduct a deep analysis of securities they invest in, and this is one of the main reasons why individual investors should follow what hedge funds are doing.
“We look at everything, small cap and large,” Meena said. She went on to present a list of the top five most popular holdings that we spotted from the latest round of 13F filings. On the first spot is, obviously, Apple Inc. (NASDAQ:AAPL), which is held by over 150 hedge funds tracked by us, the total value of the holdings amounting to $27 billion. It is followed by Google Inc (NASDAQ:GOOGL) and Microsoft Corporation (NASDAQ:MSFT), with 130 and 129 hedge funds invested in them, with values of $12.6 billion and $21 billion respectively.
Meena also pointed out some of the most ‘reliable’ hedge fund managers, which have an excellent track record over the years: Warren Buffett and David Tepper, both of which are shareholders of General Motors Company (NYSE:GM), another top stock among hedge funds.
Insider Monkey’s strategy, however, tends to focus on small-cap stocks, as Meena pointed out during her interview. This is mainly because these small-cap stocks are not so popular and are often undervalued because of that. One of our picks was United Rentals, Inc. (NYSE:URI), which managed to return an impressive 110% over the past year. More details about our performance can be accessed on this page.
To see more insights presented by the editor and cofounder of Insider Monkey, Meena Krishnamsetty, watch the full interview here:
Meena was also interviewed on BNN a couple of months ago, when she also discussed about the Insider Monkey strategy and the importance of 13F filings. Her interview from May can be accessed here.