In case you missed it, the institutional fund recently disclosed its latest stock holdings for the third quarter of this year in its 13F Form filed with the Securities and Exchange Commission (SEC).
The SEC requires funds that manage more than $100 million in assets to file these forms within 45 business days after the end of each quarter. 13Fs are useful for individual investors because institutional fund managers are often experts with decades of experience, more resources, and a deeper understanding of how stocks work.
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Investors certainly need to be aware of what their fund manager is doing, but they should not reflexively follow their investment strategy. Professional investors often invest larger amounts of money in search of quick returns than individual investors. Additionally, some of these funds are so large that we don’t know exactly who is pushing the buy or sell buttons. And of course, even the best people can be wrong sometimes, so be sure to do your due diligence.
That said, following fund managers is a great way to discover new investment ideas and check theories on existing positions in your portfolio. In recent months, multiple funds run by billionaire investors have flocked to split-stock companies that trade on the Nasdaq stock exchange. The company has struggled this year, but it pays a healthy dividend. Are they onto something? Let’s take a look.
The market has been in a bull market for two years, with the S&P 500 seemingly hitting new highs every day and up nearly 27% this year, so most stocks are doing well. However, SiriusXM Holdings, a leader in digital audio, (NASDAQ:SIRI) It has fallen more than 52% this year. Sirius has been doing so well that investors seem to have completely left the stock alone, hitting the lowest price we’ve seen in five years.
The market seems to have forgotten about that, but several high-profile billionaires are jumping in. Warren Buffett’s company, Berkshire Hathaway, has been buying stocks throughout the year. Buffett currently owns more than $2.9 billion in Sirius stock, 1% of Berkshire’s roughly $300 billion portfolio.
Ken Griffin’s Citadel Advisors acquired new positions in common stock worth more than $59 million in the third quarter. Griffin held the call and took his position in the second quarter.
Sirius has struggled in recent years due to mounting debt and declining paying memberships. However, the company recently separated from Liberty Media and conducted a 10:1 reverse stock split. The move is aimed at boosting the stock price and simplifying the company’s structure, both of which could help attract more institutional investor interest.
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