Thesis: At DASTA Investments, we believe that superior stock-picking ability can be found among investors with a long track record of high returns. We use public filings to create portfolios that mirror the holdings of selected successful investors.
Portfolio construction: We examine the public filings of investors to determine which securities they have invested in. In particular, within 45 days of the end of each fiscal quarter, large asset managers are required to file form 13-F with the Securities and Exchange Commission. This form details the asset managers’ securities holdings as of the end of the quarter, and is published on the SEC website. When a new filing is released, we rebalance the portfolio to have weights closely matching the funds’ disclosed weights.
Risks: This portfolio primarily comprises stocks and is susceptible to the inherent volatility and potential declines that characterize the stock market. Additionally, as this portfolio is based on the trading activities of hedge funds, it may adopt riskier positions over which we have limited control. It is important to note that we cannot perfectly replicate investor positions, for several reasons. Our knowledge of fund positions comes from mandatory reporting of quarter-end positions to the SEC. Significant time may pass between the quarter end and the report being filed, meaning our information on holdings may be stale. In addition, the SEC’s mandatory reporting program only covers securities; there is no reporting of other potentially significant portfolio components such as derivatives, short positions, bonds, etc. We also may omit small positions from our portfolio.
Warren Buffet Backtest
- Backtest Period: February 21, 2021 - August 14, 2023
- Backtest Avg. Returns: 10.2%
Bill Ackman Backtest
- Backtest Period: February 21, 2017 - August 16, 2023
- Backtest Avg. 14.9%
The following analysis contains simulated or hypothetical performance results that have certain inherent limitations. Unlike actual performance records, simulated results do not represent actual trading and may not reflect the impact of material economic and market factors on decision-making.
The backtested results are based on our access to the available dataset at the time of the analysis. The backtest period is determined by the historical data made accessible to us, and as such, the results are contingent on the completeness and accuracy of this dataset. Users should be aware that the backtested period may not encompass all market conditions, and the results may be sensitive to the specific time frame under consideration.
Additionally, it's important to note that past performance is not indicative of future results. The results are provided for informational purposes only and should not be considered as investment advice. Actual performance may vary significantly from the simulated results. Users are advised to exercise caution and conduct thorough research before making any investment decisions.