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Hedge Fund Education Center

Are the Delays in Hedge Fund Reporting Too Long for Piggyback Investing?

Insider Monkey’s investment approach is pretty simple. We don’t have the research budgets of hedge funds nor the kind of priviledged information that insiders get. However, we achieve better returns by imitating the best stock picks of best hedge fund managers and insiders.

Our research has shown that imitating hedge funds’ top 15 small-cap ideas outperformed the market by nearly 1 percentage point per month between June 1999 and August 2012. We launched an investment newsletter and started sharing these 15 stocks every quarter at the end of August 2012. These stock picks generated a cumulative return of 131.4% in 2.5 years. S&P 500 Index ETF (SPY) gained only 57.2% during the same period (read the details here and download a free sample issue).

You don’t need to become a premium subscriber to increase your returns though. Our research team is led by Dr. Ian Dogan who is an expert on insider trading and quantitative investing. We publish samples of his research on our site too. Check out this article that shares David Einhorn’s secret of success. The article also tells you which stocks in Einhorn’s portfolio you can imitate that generated an annualized outperformance of 10 percentage points between 1999 and 2012.

You can also follow the billionaires and other successful hedge fund managers by signing up for our free email alerts service that sends email notifications whenever we publish a report or an article about their purchases and sales. We have a similar free email alert service to track insider buys and sells.

If you watch business channels or read financial newspapers or websites, you’d notice that everyone predominantly talks about large-cap stocks. Our research has shown that it is very difficult to outperform the market by a meaningful margin if you are investing in large-cap stocks. This means you won’t be able to make any money or increase your returns by reading articles about large-cap stocks like Apple, Microsoft, Citigroup, Google, etc. We analyzed billionaire hedge fund managers’ historical stock picks. These people manage hundreds of billions of dollars and take anywhere from 30% to 80% of the returns that they generate as fees (read the details here). They have every incentive to pick the best large-cap stocks and they can spend millions of dollars researching these stocks, yet the 50 most popular large-cap stocks among hedge funds actually underperformed the S&P 500 Total Return Index by an average of 7 basis points per month between 1999 and 2012 (less than 1 percentage point per year). If these billionaire hedge fund managers’ large-cap picks can’t beat the market by a meaningful margin, you probably can’t beat the market by investing in large-cap stocks.

The good news is that hedge funds’ and insiders’ small-cap picks historically outperformed the market by a very large margin. Insider Monkey is the best website to track these funds’ and insiders’ move and we aim to provide as many free services as possible. We share a curated list of 15 stock picks every quarter with our premium subscribers. If you don’t have the time to research stocks and track hedge funds this is a very convenient service for investors. The track record of our stock picks is absolutely mind blowing. Here is our actual returns by year since the inception of our small-cap strategy at the end of August 2012:

Year Small-Cap Strategy (Real-Time Returns) S&P 500 ETF (SPY)
2012 14.6% 2.1%
2013 53.2% 32.3%
2014 28.2% 13.5%
2015 (Through 3/11/2015) 3.1% -0.5%

You can check out the backtested returns of this strategy on this page.

If you have the time to do your own research then sign up for email alerts and check out our insider trading screener. Don’t forget the fact that small-cap stocks is probably the best place to look for great investment ideas. Check back our site frequently because we are adding more free services every month.

Who are we?

Insider Monkey is one of the fastest growing financial research websites on the web, read by 1.5 million people every month.

Our research is headed by Ian Dogan who is a former fund manager, holding a Ph.D. in the field. We partnered with Marketwatch and created the Marketwatch/Insider Monkey Billionaire Hedge Fund Index.

Our content has appeared on:

The Wall Street Journal Marketwatch The Motley Fool Seeking Alpha The Street NASDAQ
  • I've been an Insider Monkey subscriber for a couple years now and the flagship strategy is one of the best strategies in my portfolio. Because the strategy is small cap you will see some major short term swings, but if you can follow the strategy and rebalance only once every quarter you will see some really strong results once you hit the 12 month time frame and beyond.
    David L.
  • I initially became aware of Insider Monkey when Meena was interviewed on Business News Network (BNN) in Canada. The idea of mimicking the best ideas from the best fund managers was appealing (as I have met many smart managers on Bay Street in Toronto). While I have only had the newsletter for one year, the Insider Monkey allocation has been the best performer in my equity portfolio. I look forward to continued outperformance in the future.
    G. Chin
    Toronto, Canada
  • I first came across Insider Monkey (IM) nine quarters ago (1/2013) and since then have enjoyed exceptional returns. Last year (3/2014) I traveled to NYC to meet the founder because I was thinking about doubling down on their strategy. I left favourably impressed and proceeded. It was a smart move. At the beginning of this year I decided to double down again. There are no guarantees but preliminary results are promising.

    Why do I recommend IM?
    1. It's easy: 15 picks every 90 days. Most picks are repeated at least once, some more than eight times.
    2. It's flexible: if a pick goes bad you only hold it for 90 days.
    3. Time saving: the IM team vets hundreds of HF SEC reports every 90 days and produces a list of 15 SC picks from the best stock pickers in the world. A world-class research department for less than a dollar a day.
    4. It works. Need I say more?

    One admonishment: have faith in the model, hold all 15 picks for ninety days.
  • I want to thank you and the team for the great results this past year. Many of my friends and colleagues use profesional financial advisors and annually pay 1% to 1.5% of their portfolio value for mediocre results. Insider Monkey's performance is outstanding for a mere fraction of the cost. I am an analyst for a utility and have always wanted to invest in high growth small cap stocks, but I have never had the time, expertise or access to the information needed to effectively research them, and was never comfortable with casual stock recommendations from magazines, blogs, and television. I had never subscribed to a premium publication but was immediately impressed with the Insider Monkey team’s analysis and the proven results of the 15 Stock Small Cap Strategy.

    Keep up the great work. Thus far, the Insider Monkey team’s approach has enhanced my investment portfolio and I look forward to future issues and following the team’s investment strategy throughout the foreseeable future.
    Jim T.
    New York