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13F co-holder relative-value reversion

Updated dailyData needs: highlong onlyshort onlylong short
paper
2014
Source
Anton, M., & Polk, C. (2014). Connected Stocks. Journal of Finance, 69(3).
Read the paper →

In plain terms

When a stock drifts away from the other companies the same big funds own, it tends to drift back.

How it works

Trades the focal stock's dislocation from its 13F co-holding cohort rather than the cohort's lagged direction. The cohort's common return is de-meaned out, leaving the focal name's idiosyncratic gap to the basket of stocks held by the same institutions; that gap mean-reverts.

Live results

347 times picked on its own · 753 times inside a blend (696 beat the stock) · updated 2026-06-06
This strategy is a frequent ingredient in blends that combine a few strategies on one stock. It has contributed to 753 such blended picks (696 of which beat simply holding the stock). Picking it on its own is only one of the ways it shows up.
How its picks scored vs. buy & hold
Each pick is graded on a recent year it was never tuned on, against simply owning the same stock
Where its edge concentrates
Share of picks in each company-size group that beat buy & hold
How often it trades
Active vs. patient. Bars on the left mean it waits for rare setups; bars on the right mean it trades often
Return vs. buy & hold
How much each pick beat or trailed simply owning the stock over the test year (extreme microcap moves trimmed)
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Data dependencies

  • Entity graph edges

    A data feed this strategy reads, refreshed on its normal schedule.

  • Daily prices

    Adjusted-close OHLCV for every US-listed ticker; primary price feed.

  • Investor holdings

    A data feed this strategy reads, refreshed on its normal schedule.

Expected edge

Market-neutral reversion of a stock toward the basket of names held by the same big funds, capturing idiosyncratic dislocation net of the shared-ownership factor.

Related families

Explore 13F co-holder relative-value reversion on alphactor.ai

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For informational and educational purposes only. Not financial advice. Learn more