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Jim Cramer Knows How to 'Follow the Patterns' of Institutional Investing

TheStreet's own Jim Cramer explains why following the moves of big financial institutions is crucial this time of year.

Jim Cramer addressed a group of investors at this year's teach-in for Financial Success Strategies at the Harvard Club in Manhattan. In his opening remarks TheStreet's founder explained why it is increasingly important to follow the movements of large institutional firms and hedge funds. he explains that in doing so you will likely be able to see what stocks these companies will hold through the end of the year and be able to glean why the major players hold those precious assets through the Holiday season. 

Video Transcript: 

I want to thank all of you, for taking your Saturday, and coming and seeing us. It is great to meet you, I'll meet every single one of you whom I have not yet met. I hope you will hear new ideas today, that I think are actionable. And why is that important?

Well, it's important because right now, every year, like clockwork, what happens, is that people identify the stocks, the big institutions, and the hedge funds, that they are going to own between here and year end.

I used to do this at my hedge fund. Now, I did not know, obviously, which stocks that "they" were going to buy. And I'm always conscious when I have John Najarian here. He knows the option activity, he can follow the patterns better. I hope he talks about that, of which ones "they" want to buy. He nailed Microsoft this week. As he said, "Knock wood. You can't always get them right."

But my thing is this, if I can get into the stocks in the first week of November, either via deep in the money calls, and we'll have some great strategies today ... Or common stock, you can take advantage of what I think is going to be ... Ah, well, let me just use the word, the markup, or walkup, of a few stocks that I think are going to be in everybody's portfolio who are in the hedge funds.

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