What is the 'SEC Form 13F'

The SEC Form 13F is a filing with the Securities and Exchange Commission (SEC) also known as the Information Required of Institutional Investment Managers Form. It is a quarterly filing required of institutional investment managers with over $100 million in qualifying assets. Companies required to file SEC Form 13F may include insurance companies, banks, pension funds, investment advisers and broker-dealers.

BREAKING DOWN 'SEC Form 13F'

SEC Form 13F, which must be filed within 45 days of the end of each quarter, contains information about the investment manager and potentially a list of their recent investment holdings. The form was made famous by investment con artist Bernie Madoff. It provides investors with an inside look at the holdings of Wall Street's largest investment managers. While this form can provide valuable insight into the management style of some of Wall Street's best portfolio chiefs , history has proven that these forms are only truly useful to investors when the investment manager reports accurately and honestly.

Hedge Funds and 13F Forms

Institutional investors have become more prolific in the past six decades. In 1950, equity ownership among institutions represented about 8% of the total U.S. market capitalization. That percentage increased dramatically in the following 60 years. By 2010 it was estimated that 67% of all domestic stocks were controlled by institutions.

Hedge funds rose to prominence with index-busting returns that tapered off beginning with the bull run starting in 2009 after the financial meltdown. Many individual investors, attempting to replicate the strategies of iconic money managers such as Paul Tudor Jones and George Soros, peer inside 13F filings for insight into the purchase and sales of securities transacted by the pros. The Tudor Investment Corporation is captained by Jones and its portfolio holds about 1,300 stocks. In its May 16, 2016, 13F filing, Tudor’s holdings included Allergan and Starwood Hotels and Resorts Worldwide Inc. among its top-10 positions.

13F Reliability

Some investors, and even the Securities and Exchange Commission (SEC) itself, question the quality and integrity of 13F filings. In a 2010 investigation, the SEC’S findings regarding 13F reporting requirements revealed concerns around three major issues. The first finding offered that no SEC division assumed any authority to scrutinize 13F’s in general. The second conclusion stated that no SEC office analyzes 13F’s content for “accuracy and completeness. Lastly, the SEC found that the Electronic Data Gathering, Analysis and Retrieval (EDGAR) system possessed no internal checks used to monitor the filings of 13Fs.

RELATED TERMS
  1. SEC Form 15

    SEC Form 15 is a voluntary filing with the regulator by publicly ...
  2. SEC Form 18-K

    SEC Form 18-K is a filing with the SEC used to provide an update ...
  3. Form 4

    Form 4 is a document that must be filed with the Securities and ...
  4. SEC Form S-4EF

    An SEC filing that is required when forming a savings bank, savings ...
  5. Form 144

    Form 144 is filed with the Securities and Exchange Commission ...
  6. SEC Form 10-KSB

    SEC Form 10-KSB was a filing with the Securities and Exchange ...
Related Articles
  1. Investing

    Hedge Fund Billionaires Bet on Consumer Discretionary Stocks: 13F

    The latest 13F filings show that hedge fund billionaires invested in consumer discretionary stocks in Q4 of 2017.
  2. Investing

    Who Bought or Sold PayPal in SEC 13F Filings?

    With 13F reports for Q2 due Aug. 15, preliminary filings reveal that a number of major investors hold PayPal.
  3. Investing

    Hedge Funds Skeptical of IPOs and Favored Alibaba in Q2: 13 Filings

    13F trends show that hedge funds were leary of investing in popular IPOs, but that they tended to focus investments on Chinese e-commerce site Alibaba.
  4. Investing

    Billionaire Dan Loeb Bought 4.5 Million Shares of Alibaba in Q2: 13F filings

    13F filings from Q2 reveal that Dan Loeb's hedge fund Third Point bought a huge stake in the social media and e-commerce giant.
  5. Investing

    The Biggest Funds Focused on GE, Bank of America, and Snap In Q2: 13F Filing

    13F filings from the nation's top money managers reveal some trends which everyday investors might find useful going forward.
  6. Managing Wealth

    Billionaire John Paulson Trims JNJ, Teva, Adds CVS: 13F Filing

    It's not hard to see why Paulson was bearish health care, given the public stance Hilary Clinton had taken amid the price gouging by drug companies.
  7. Investing

    How to use insider and institutional ownership

    Learn why insider and institution stock ownership reveal much information about the stock. Understand what to consider when making well-informed investment decisions.
  8. Investing

    Invest Like Buffett: Building A Baby Berkshire

    Get a piece of Warren Buffett's profit by building a portfolio that mimics Berkshire Hathaway's investments using SEC Form 13F to coattail his picks.
  9. Personal Finance

    Policing The Securities Market: An Overview Of The SEC

    Find out how this regulatory body protects the rights of investors.
RELATED FAQS
  1. What are unregistered securities or stocks?

    Before securities, like stocks, bonds and notes, can be offered for sale to the public, they first must be registered with ... Read Answer >>
  2. When must a company announce earnings?

    The Securities & Exchange Commission (SEC) requires companies to file earnings reports no later than 45 days after the end ... Read Answer >>
  3. Should mutual funds be subject to more regulation?

    Understand whether mutual funds need stricter regulation. Learn what types of current and future regulations have been put ... Read Answer >>
Hot Definitions
  1. Gross Margin

    A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage. ...
  2. Inflation

    Inflation is the rate at which prices for goods and services is rising and the worth of currency is dropping.
  3. Discount Rate

    Discount rate is the interest rate charged to commercial banks and other depository institutions for loans received from ...
  4. Economies of Scale

    Economies of scale refer to reduced costs per unit that arise from increased total output of a product. For example, a larger ...
  5. Quick Ratio

    The quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets.
  6. Leverage

    Leverage results from using borrowed capital as a source of funding when investing to expand the firm's asset base and generate ...
Trading Center