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by jonmc12 1917 days ago
https://finbox.com/ideas/ray-dalio
2 comments

Big fund holdings (without knowing their full strategy) are insightful, but only in the sense that you can see how many big funds are holding a particular stock.

Looking just at holdings of any one fund can be pointless since you never know how these holding are part of some bigger strategy especially when you don't know what other derivatives they're holding like options / futures and other non publicly traded products. Any particular holding might also be part of a bigger ploy. It can be part of a hedge / bet / short / or acquisition strategy. Any single holding can also be part of multiple portfolios within one fund each with their own diverse investment goals.

Also shorts aren't required to be published in SEC disclosure forms, so for a market neutral long-short fund you're only seeing half the picture.