WhaleWisdom Screener: Tracking Hedge Fund Movements

WhaleWisdom is a website and a tool that provides detailed information about the investment holdings and activities of hedge funds, mutual funds, and other major investors.

In this article, we'll introduce you to WhaleWisdom and how it works, so you can use it to make your next data-driven investment decision.

What is WhaleWisdom?


WhaleWisdom.com aims to provide private investors with access to the expertise of professional investors. To achieve this goal, the platform analyses the 13F filings of top-performing hedge fund managers and extracts valuable insights, including the stocks they are selecting and those they are divesting. By replicating the investment strategies of these successful “whales” in your own portfolio, the creators of this website claim that you can potentially outperform the market.

whale wisdom

13F filings: the basis of the analysis

13F filings are reports submitted to the U.S. Securities and Exchange Commission (SEC) by institutional investment managers. These filings provide a look into the equity holdings of managers who control over $100 million in assets. The primary purpose of 13F filings is to increase transparency in the financial markets and provide public information about the investment activities of large managers.

More than 5,000 of these reports are analysed every 3 months in order to provide the clearest possible information: which funds consistently outperform the market and in which stocks do whales invest?

To achieve this goal, as is often the case, everything comes down to the details: for example, only hedge funds that maintain longer-term positions are selected. This is important because there is a 45-day gap between the deadline and the publication of the 13F filings.

The heat map: a treasure for stock selection

Let's now take a look at the website's tools. The 13F Heat Map is a visual tool often found on financial analysis websites like WhaleWisdom. It is designed to provide a quick and intuitive overview of the investment activities of institutional investors, based on their 13F filings. Here's how it typically works and what it shows:

  • The cells are usually colour-coded to indicate changes in ownership or investment levels. For example, a cell might be green if there's an increase in institutional ownership, red if there's a decrease, and yellow or neutral if there's little to no change.
  • Sometimes, the size of each cell can vary to represent the relative size of the investment in each stock. Larger cells might indicate a larger investment by institutional investors.
  • The heat maps are interactive, allowing users to click on a cell to get more detailed information about the stock, such as the number of funds holding it, the total value of holdings, or changes over the quarter.
whale wisdom blue whale

Monitoring specific investors and whales

WhaleWisdom also offers the possibility to view the portfolios of certain “whales”. Below is an example of the composition and latest activities of Appaloosa, one of the best hedge funds of all time, which is backed by David Tepper.

whale wisdom blue whale investment

You can see the top buys, the top sells, and the current holdings of the chosen whales.

WhaleIndex

The WhaleIndex is a feature offered by WhaleWisdom, designed to track and analyse the performance of stocks favoured by prominent hedge funds and institutional investors. This index is based on the holdings revealed in the 13F filings of these major investors.

The values are reviewed every 3 months and combined into an index with the same weighting. All members of the index can be viewed at any time and exported to Excel. Those who want to be more comfortable can also use the email alert to always be up-to-date and know if there is any change in the composition.

During 2020, the index yielded a gain of over 70%, according to the website. Investors often use the WhaleIndex as a benchmark to compare the performance of their own investments or other investment strategies.

Another highlight of WhaleWisdom.com is its historical testing tool, which is intended for more active users who not only want to track the described WhaleIndex, but test and optimise their own strategies.

In addition to numerous predefined rules and filters that determine, for example, how exactly shares should be selected and weighted, very flexible parameters are also available, which include, among other things, the possibility of hedging the portfolio in bear markets with cash or short positions.

WhaleWisdom price

Those interested in WhaleWisdom can register for free and receive data from the last 2 years' 13F reports, the discussed heat map, as well as the historical testing tool and reports.

Those who value longer data series may need WhaleIndex and other tools like Excel add-ons for which they have to pay $300 per year. For an additional charge, a Pro version and an Enterprise version with an even wider range of features are also available.

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Conclusion

WhaleWisdom.com has done its homework: the operation is very intuitive and convenient due to the clear design. The information can be integrated into one's own trading strategy, whether as a set of ideas for interesting stocks, as a passive strategy (following the WhaleIndex), or to take a closer look at certain funds.

FAQs

Is WhaleWisdom free to use?

WhaleWisdom offers a free tier that provides access to the past two years of 13F data, basic email alerts, and limited data access on most tools. There are also paid subscription tiers for more advanced features.

Can I export data from WhaleWisdom for my analysis?

Yes, WhaleWisdom allows users to export data to Excel, especially under its paid subscriptions, facilitating further personal analysis.

Does WhaleWisdom offer any tools for backtesting investment strategies?

Yes, WhaleWisdom offers a 13F backtester tool, allowing users to create theoretical portfolios based on historical 13F filings and test their performance over time.

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