If you’ve been reading Palm Beach Insider these last few weeks, you know I think we’re entering a truly exciting time for markets.
I’m not just talking about the volatility I see ahead, and how it’s likely to cause the best stocks in the market to go on sale…
And you might think I’m talking about the election uncertainty, given last night’s debate. But right now, politics is the furthest thing from my mind.
You see, we’re coming up on a period where the world’s biggest money managers, hedge funds, and institutions are forced to spill the beans on their biggest investment ideas.
I’m talking about figures like Warren Buffett, Ray Dalio, and Bill Ackman. Industry titans worth dozens of billions of dollars, collectively.
When they reveal these ideas, it naturally causes a slew of money to rush into the stocks they’re buying. For most people, it’s impossible to take a position in time. As soon as the news drops, headline-reading algorithms bid up the price of the stock to absurd levels.
But for a lucky few, there exists a way to spot these major money moves before they hit the headlines. And it can lead to monstrous returns in short time.
Let me explain…
Market Movers
Every quarter, any money manager that controls over $100 million in assets must submit something called a 13F filing. This requirement is the result of a little-known amendment to the Securities Exchange Act of 1934.
Essentially, a 13F is a list of what positions the manager took the prior quarter. It shows what they bought, when they sold, and what they held through that period.
Today, September 30, is the last day of Q3 2020. And from the end of each quarter, money managers have 45 days to submit their 13F. That means over the next 45 days, we’ll start to see what the world’s biggest money managers are planning in such a unique market environment.
Now, 99% of the investing public doesn’t read these filings. But they’re absolute market movers when it comes to trading algorithms.
Just take Southwest Airlines (LUV), as one example. Back in February 2017, Warren Buffett disclosed a massive 7% stake in the company (7% might sound small, but that stake amounted to roughly over $2 billion).
On the back of that announcement, shares in Southwest rose 8%.
That’s a happy day for Southwest Airlines shareholders, and a happy day for Warren Buffett. But for someone looking to profit on that big move, it’s a frustrating day. These moves happen almost immediately after the news comes out, because algorithms programmed to read and respond to 13F news headlines are faster than any everyday investor.
But I have a solution…
Algorithm-Beating System
For the past 20 years, I’ve been building and refining an unbeatable market-reading system. It scans over 5,500 stocks a day for unusual activity… namely, the activities of large institutions like those run by Buffett, Ackman, and Dalio.
In other words, my system detects the big moves taken by these industry titans every single day – not just when the 13F filing comes out.
It’s a massive advantage. It allows me to pinpoint stocks that these guys are buying… and take a position ahead of the crowd – even ahead the trading algorithms. So, instead of having a frustrating day, watching a stock soar on the back of a news headline no ordinary investor could’ve seen coming…
I can see well in advance what kind of moves to expect.
For example, in January 2017, my system flagged Applied Optoelectronics (AAOI). About a month later, Trafelet Brokaw Management announced it had bought 1 million shares of the stock – about a 5.67% ownership stake. It soared 331%.
And even if these stocks don’t appear in 13F filings, it identifies big-money interest in specific stocks. One of my first-ever recommendations to my subscribers was The Trade Desk (TTD). Since my system flagged it, it’s up nearly 500%.
Here’s the deal… This system is unlike anything you’ve seen before. It’s completely proprietary, and the code is secret to me and a select handful of close colleagues.
I’ve heard offers from hedge funds to buy it out and use it for themselves. But I’ve turned them all down. Because I know that I can put it to better use, helping everyday investors get a unique edge.
So, the real reason I’m so excited about the next two months? The newest 13F filings are about to go public. And with the recent volatility, it’s likely that investors today will pay less than the big boys…
If it’s anything like previous quarters, I’m certain that my subscribers will make a killing buying the right companies at the right time.
Patience and process!
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Jason Bodner
Editor, Palm Beach Insider
P.S. One quick thing before I go…
There’s another, more advanced strategy I use every so often with 13F filings. It can amplify the gains from these filings dramatically… sometimes as much as tenfold. I’ll reveal more about that in the coming weeks.
Until then, though… If you want to start enjoying the benefits of my unbeatable stock picking system, just go here to learn all about it – and how you can get access.
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