At Holdings Channel , we have reviewed the latest batch of the 22 most recent 13F filings for the 09/30/2015 reporting period, and noticed that International Business Machines Corp. (Symbol: IBM) was held by 17 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen .
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in IBM positions, for this latest batch of 13F filers:
Change In Share Count
Change In Market Value($ in 1000's)
Pegasus Partners Ltd.
CT Financial Advisors LLC
Stillwater Investment Management LLC
James Investment Research Inc.
Cullinan Associates Inc.
New England Research & Management Inc.
Neville Rodie & Shaw Inc.
Stock Yards Bank & Trust Co.
Liberty Capital Management Inc.
Thompson Rubinstein Investment Management Inc. OR
Curbstone Financial Management Corp
Atalanta Sosnoff Capital LLC
Denali Advisors LLC
Essex Financial Services Inc.
Cohen Lawrence B
Kempner Capital Management Inc.
Rosenbaum Jay D.
In terms of shares owned, we count 5 of the above funds having increased existing IBM positions from 06/30/2015 to 09/30/2015, with 10 having decreased their positions.
Looking beyond these particular funds in this one batch of most recent filers, we tallied up the IBM share count in the aggregate among all of the funds which held IBM at the 09/30/2015 reporting period (out of the 4,055 we looked at in total). We then compared that number to the sum total of IBM shares those same funds held back at the 06/30/2015 period, to see how the aggregate share count held by hedge funds has moved for IBM. We found that between these two periods, funds reduced their holdings by 5,955,285 shares in the aggregate, from 573,625,936 down to 567,670,651 for a share count decline of approximately -1.04%. The overall top three funds holding IBM on 09/30/2015 were:
We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like International Business Machines Corp. (Symbol: IBM).