whalewisdomalpha.com - Best large hedge funds to clone

This is very similar the the whale wisdom portfolio that is outlined in the above article, except the whale wisdom uses the universe of hedge funds that make large concentrated bets. I believe to be included in the universe the hedge fund has to have 50% of AUM invested in the top 10 holdings.

I have been using this "screen", with a little tweek since mid 2021 with great results. I personally look at the top 15 holdings of the selected hedge funds, then select and buy any individual stock that is held by 2 or more hedge funds, hold up to 20 positions for a quarterly hold, sell off any postion that falls out of the top 15. If there are any ties in the ranking I will select the stock that has a net increase in their holding and skip any that are selling off their position. Most quarters it gives me around 15 +- stock to buy or hold. Very rarely has it given me a full 20 stocks.

Looking at Dataroma's superinvestor portfolio I have held or currently hold almost every one of the listed stocks with many of the big names list MSFT, GOOGL, META, AMZN, V being held since I start using this screen. Most quarters it will only buy/sell a couple positions, and it appears that most of the sells are losing poitions that get cut pretty fast.

While it has been a great ride for the last 4 plus years, this is has only been in a mostly up bull market. I do plan to use DBE to cut my exposure to this screen by 60-70%, I do plan on keep using it in the foreseeable future. The only concern is the 10 hedge funds selected by whale wisdom can and may be getting a little stale and out dated. I would like to figure out a way to refresh the selected hedge funds on a rolling 2-3 year basis just to keep the list fresh. Maybe using Dataroma I can figure out how to filter the hedge funds to looks for funds with a concentrated holding and select funds that have beat the SP over the past couple years.

Opihi