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Form 13F (SEC)



Definition

Form 13F is a quarterly report that is required to be filed with the U.S. Securities and Exchange Commission (SEC) by institutional investment managers with at least $100 million in equity assets under management. It provides information about the investment manager and their portfolio holdings in specific types of securities. The form is intended to increase investor confidence and transparency in the financial market.

Phonetic

The phonetics for the keyword “Form 13F (SEC)” would be pronounced as “Form thirteen F (S-E-C)”

Key Takeaways

Sure, Here are three main takeaways about Form 13F:“`html

  1. A Form 13F is a quarterly report required to be filed by institutional investment managers with at least $100 million in equity assets under management. The form is mandated by the U.S. Securities and Exchange Commission (SEC).
  2. The Form 13F report includes details about the specific securities the qualifying manager holds, including the name of the issuer, the class of security, the CUSIP number, the number of shares, and the total market value.
  3. The Form 13F is a way for the general public and regulators to understand where large institutions are investing their money. This is to provide transparency into the investment strategies and behavior of major market participants.

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Importance

Form 13F is an important quarterly report to the U.S. Securities and Exchange Commission (SEC) required from all institutional investment managers with at least $100 million in assets under management. These forms provide transparency into an investment manager’s holdings, revealing their significant positions at the end of the given quarter. By assessing a firm’s Form 13F, one can gain insight into its investment strategies and performance. Consequently, Form 13F represents a key communication tool between these firms and potential investors, offering valuable information about the assets, including specific securities and their quantity, managed by a particular institution.

Explanation

The primary purpose of Form 13F, which is mandated by the Securities and Exchange Commission (SEC), is to provide transparency into the holdings of large investment organizations. This form is used as a mechanism to disclose significant holdings of listed equities and is required to be submitted by institutional investment managers that manage $100 million or more in specific types of equities. This includes mutual funds, hedge funds, trust companies and other entities. By providing this information to the public and the SEC, the form helps regulators and other investors to understand the influence and impact of these large managers on the market.Form 13F is used to track changes in investment decisions taken by the fund managers and can serve as an essential tool for other market participants and analysts. It provides insights into strategies implemented by large institutional investment managers, helping other investors make informed decisions. Moreover, regulatory bodies use this data to understand the distribution of equity holdings across the market and regulate fraudulent activities. Therefore, Form 13F serves as a vital piece in the puzzle of market transparency and regulation.

Examples

1. Berkshire Hathaway Inc.: Warren Buffet’s investment company, Berkshire Hathaway, is well-known for attracting followers and interested investors who often attempt to understand the firm’s investment strategy. Every quarter, the company files a Form 13F with the SEC, which is closely analyzed by the public and media to get an insight into which stocks the firm bought or sold during the last quarter. For example, the Form 13F filing for Q3 2021 revealed that Berkshire Hathaway had invested in multiple new companies and sold off some of its previous investments.2. Renaissance Technologies: This is a renowned hedge fund firm known for its quantitative approach towards investments. The firm uses mathematical and statistical methods to execute its investment strategies. Similar to other institutional investors, Renaissance Technologies files its Form 13F quarterly. In the year 2020, a filing indicated that the firm had increased positions in healthcare stocks and reduced its tech exposure, providing insight into its evolving strategies in a pandemic-affected market.3. Fidelity Investments: As a large international asset management firm, Fidelity Investments is required to submit Form 13F to the SEC detailing its equities portfolio. For instance, in the first quarter of 2020, the company’s Form 13F revealed that Fidelity drastically increased its stake in Apple, Amazon, and Microsoft, signalling to the broader market its confidence in these technology stocks during the midst of the COVID-19 pandemic.

Frequently Asked Questions(FAQ)

What is Form 13F (SEC)?

Form 13F is a quarterly report that is required to be filed by institutional investment managers with the U.S Securities and Exchange Commission (SEC). This form discloses their equity holdings and provides insight into their investment decisions.

Who is required to file Form 13F?

Institutional investment managers with discretionary assets under management (“AUM”) of at least $100 million in Section 13(f) securities are required to file Form 13F.

How often is Form 13F filed?

Form 13F needs to be filed within 45 days of the end of each calendar quarter.

What is the purpose of Form 13F?

The purpose of Form 13F is to provide the public with information regarding the investment activities of institutional investment managers, which can influence the decisions of other investors.

What types of information is disclosed in Form 13F?

The form discloses the names of the institutional investment manager and the securities they manage along with the class of the securities, the CUSIP number, the number of shares owned, and the total market value.

Does the reporting of Form 13F affect the market?

Publication of a Form 13F can have a sizable impact on a stock’s price as it gives investors insight into what ‘big money’ is doing.

How can I view a submitted Form 13F?

A submitted Form 13F can be viewed publicly through the SEC’s online EDGAR database.

What are the penalties for not filing Form 13F timely or correctly?

Failure to timely or correctly file Form 13F can result in SEC enforcement actions, which may include penalties and the potential loss of an advisor’s registration.

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