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Stockpickr) -- What are the big names buying right now? Not much.
Even as the broad market has staged a colossal rally in 2013, the
S&P 500 up more than 10% as I write, Wall Street has been in disbelief. And that's shown through in funds' performance numbers as well. By and large, hedge funds have drastically underperformed the broad market this year, eschewing equities at exactly the time when the rally kicked into high gear.
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As the early holding filings trickle in for the first quarter of 2013, we're getting an interesting picture of the few names that fund managers are buying. The focus is pretty clear: The pros are piling money into conventional big-name "blue-chip" stocks right now. But they're being extremely selective about the names that are getting added onto right now. Healthcare, IT and financial firms make up the bulk of their buys. Today, we'll take a closer look at
five of their favorite stocks.
To do that, we're focusing on 13F filings. Institutional investors with more than $100 million in assets are required to file a 13F -- a form that breaks down their stock positions for public consumption. From hedge funds to mutual funds to insurance companies, any professional investors who manage more than that $100 million watermark are required to file a 13F.
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In total, approximately 3,400 firms file 13F forms each quarter, and by comparing one quarter's filing to another, we can see how any single fund manager is moving their portfolio around. While the data is generally delayed by about a quarter, that's not necessarily a bad thing. Research shows that applying a lag to institutional holdings can generate positive alpha in some cases.
That's all the more reason to crack open the moves being made with institutions' $14.6 trillion under management. So far, around 10% of firms have submitted their 13Fs to the SEC - that small sample gives us a sneak peek at which stocks institutions favor right now.
Today, we'll focus on
five institutional favorites for the first quarter of 2013.
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