Institutional investors (mutual funds, pension funds, hedge funds) must disclose their holdings quarterly through 13F filings with securities regulators. These filings reveal what the most sophisticated investors are buying and selling.
Increasing institutional ownership can signal growing professional confidence in a company. Conversely, declining institutional ownership may indicate that professional investors see deteriorating fundamentals. However, 13F filings are delayed by 45 days, so the information is not real-time.
← Back to all investing concepts