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Fundville » How to Make Better Use of Fundville.com - Masters


It’s smart to follow the “smart money”. Well known hedge fund blog Market Folly gave a detailed explanation about why and how. Fundville’s “Masters” tool will let you follow your favorite fund managers and build a portfolio copying their strategies, but for free and have 2700 managers to choose from.

Click on the link of “Masters” at the top of every page brings you directly to the tool. We thought about implementing a more user-friendly interface (because fundville.com was built upon user-friendliness) at the beginning, but we ended up with a single text area where user can enter queries. The idea is that we have all the structured data of institutional investor stock ownership and we will certainly bring more powerful tools in the future. Instead of working on specific user interface every time, we simply introduce new format of query and re-tool our engine to make it ultimately, user-friendly.

Let’s start on how to build the queries for the “Masters” tool with Market Folly ’s favorite 3 hedge fund managers, Seth Klarman of The Baupost Group, Eric Mindich of Eton Park Capital, and Chris Shumway of Shumway Capital Partners. All three managers are highly recognized, extremely successful managers with a long term track record.

First, let’s find the “fund ID” of each manager. Search “Baupost” on fundville and will lead you to Baupost Group’s page.  Note that in web browser, the URL for the page is http://fundville.com/fund/271/BAUPOST-GROUP-LLC-MA, and the number 271 is the fund ID that represents Baupost Group in our database.

Similarly, we find that the fund ID for Eton Park Capital is 925, and fund ID for Shumway Capital Partners is 2480. Our job is 75% done.

Now the tough part is how to weight the 3 wonderful managers. Suppose you have $100,000 to invest following these 3 managers. You could give them 1/3 for each or you can give $30,000 each to Baupost and Eton Park, and $40,000 to Shumway.

If you give 1/3 to each, your first line of the query is FUND: 271,1|925,1|2480,1. Note that you must put a ‘|’ to separate each fund.

If you decide to give $30,000 each to Baupost and Eton Park, and $40,000 to Shumway, your first line of the query is FUND: 271,3|925,3|2480,4. Our engine will calculate the percentage each fund takes.

Now let’s move on to the 2nd line, “WEIGHTED:”. Currently you can only put on ”WEIGHTED: YES” or “WEIGHTED: NO”. “WEIGHTED: YES” means the model portfolio will keep the original weight in manager’s portfolio, i.e., if you give $30,000 to Baupost, it will be allocated to Baupost’s top 10 or top 5 holdings based on Baupost’s original allocation, rolled up to 100%. “WEIGHTED: YES” is more close to run a real fund-of-funds where you give the money to a manager, and ask him/her to invest only in top 10 or top 5 holdings of his/her fund according to the fund’s allocation.

WEIGHTED: NO” is much simpler and requires less computing power. It simply finds the top 10 or top 5 positions of each manager and then weights equally in the model portfolio. If you go 30% and top 10 stocks with Baupost, each stock will be weighted 3%. Market Folly ’s portfolio uses top 5, equally weighted method to “clone” the 3 managers.

Now we come to the easy and final part. “INPUT:” is the number of top stocks to choose from manager’s portfolio, “OUTPUT:” is the number of top stocks to show from the resulted model portfolio.

If you decide to give $30,000 each to Baupost and Eton Park, and $40,000 to Shumway, and want to weighted according to original portfolio, with top 10 as input and top 20 as output, the query is:

FUND: 271,3|925,3|2480,4
WEIGHTED:YES
INPUT:10
OUTPUT:20

And the result is:

Top 20 Stocks Resulted From Your Model Portfolio Query

No. Company Stock % Portfolio (Value)
1.) BANK OF AMERICA CORPORATION BAC-PS 15.18%
2.) NEWS CORPORATION NWSA 9.81%
3.) CITIGROUP INC C 6.01%
4.) APPLE INC. AAPL 5.48%
5.) WELLS FARGO & CO. WFC 5.38%
6.) JOHNSON & JOHNSON JNJ 4.75%
7.) DOMTAR CORP UFS 4.71%
8.) TEVA PHARMACEUTICAL INDUSTRIES LTD ADR TEVA 4.70%
9.) EQUINIX, INC. EQIX 4.67%
10.) VIASAT, INC. VSAT 4.58%
11.) PEPSICO INC. PEP 4.33%
12.) PFIZER INC PFE 4.14%
13.) THERAVANCE, INC. THRX 3.87%
14.) DISNEY (WALT) CO. (THE) DIS 3.81%
15.) TIME WARNER INC TWX 3.79%
16.) VERISK ANALYTICS, INC. VRSK 3.59%
17.) VIACOM INC CL B VIA-B 3.34%
18.) BREITBURN ENERGY PARTNERS, L.P. - COMMON UNITS REP BBEP 2.64%
19.) AMDOCS LTD ORD DOX 2.63%
20.) GOODYEAR TIRE & RUBBER CO. GT 2.60%
Total 100%

Now let’s come back to Market Folly ’s portfolio, the query is:

FUND: 271,1|925,1|2480,1
WEIGHTED:NO
INPUT:5
OUTPUT:15

and the result is:

Top 15 Stocks Resulted From Your Model Portfolio Query

No. Company Stock % Portfolio (Value)
1.) BANK OF AMERICA CORPORATION BAC-PS 13.33%
2.) TEVA PHARMACEUTICAL INDUSTRIES LTD ADR TEVA 6.67%
3.) NEWS CORPORATION NWSA 6.67%
4.) VIACOM INC CL B VIA-B 6.67%
5.) THERAVANCE, INC. THRX 6.67%
6.) WELLS FARGO & CO. WFC 6.67%
7.) CITIGROUP INC C 6.67%
8.) DOMTAR CORP UFS 6.67%
9.) AMDOCS LTD ORD DOX 6.67%
10.) BREITBURN ENERGY PARTNERS, L.P. - COMMON UNITS REP BBEP 6.67%
11.) JOHNSON & JOHNSON JNJ 6.67%
12.) VERISK ANALYTICS, INC. VRSK 6.67%
13.) VIASAT, INC. VSAT 6.67%
14.) APPLE INC. AAPL 6.67%
Total 100%

Note that we only have 14 stocks to show. It’s due to that both Eton Park and Shumway bought BAC-PS, the Bank of America newly issued equity units in last quarter and our engine automatically roll the positions up.

The tool needs to do some complicated calculations so it takes a while to show the result. Please be patient.

Simple, isn’t it? Now try it yourself.

Fundville Analytics Team

PS: Other interesting queries:

Smart hedges (Paulson, Appaloosa, Greenlight, Third Point):

FUND: 2516,1|108,1|1158,1|2810,1
WEIGHTED:NO
INPUT:5
OUTPUT:15

Please add your queries in the comments. Thanks!

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3 comments

  1. [...] is very similar to our “Masters” tool, but a little simpler. Please read our blog on how to use the “Master” tool [...]

  2. [...] Fundville: Track 3000+ Fund Managers » How to Make Better Use of Fundville.com - Masters fundville.com/blog/2010/03/how-to-make-better-use-of-fundvillecom-masters – view page – cached It’s smart to follow the “smart money”. Well known hedge fund blog Market Folly gave a detailed explanation about why and how. Fundville’s “Masters” tool will let you follow your favorite fund managers and build a portfolio copying their strategies, but for free and have 2700 managers to choose Filter tweets [...]

  3. [...] with our tools “Masters” and “VPStock“. Read blogs on how to use “Masters” and “VPStock” tools before you give them a [...]

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