Tracking changes in ownership in 13Fs can be a great way to gain insight into what hedge funds are keen on. It’s important to note though, that investors should take the filings with a grain of salt as context is key. A fund could be doing a pair trade or using stock as part of an options strategy that as a mere onlooker, you won’t have a full understanding of.
It is, however, a great way to get a sense of position sizing and overall sector preferences — where they’re overweight or underweight. And if you find a manager whose style of investing you like, it can be great to see what ideas they’ve executed on.
For me, that manager is Julian Roberston of Tiger Management lore. He’s spawned a number of Tiger funds and Tiger “cubs,” perhaps most notably Chase Coleman’s Tiger Global.
Looking over Tiger Global’s holdings and what bulge bracket banks are recommending, the following are seven stocks to buy that smart money is buying now.