Insider & Flow#349tier 2experimental liveNew

thirteen f breadth overpriced short

cadence: Quarterlydata: lowshort only
paper
2002
Source
Chen, J., Hong, H., Stein, J.C. (2002). "Breadth of ownership and stock returns." Journal of Financial Economics, 66(2-3), 171-205.
Read the paper →

What it checks

When the number of institutional investors holding a stock jumps sharply in a single quarter, it means the pool of marginal optimists has tapped out. The stock is overpriced — short it for the next 2-3 months.

Mechanism

Under Miller (1977) short-sale constraints, only optimists set prices. When the number of distinct institutional holders jumps sharply (top-decile of own history), the marginal optimist tail has saturated and forward returns fade. Chen-Hong-Stein document the asymmetry — breadth-jumps predict negative drift; breadth-drops predict positive.

No production champion data for this family yet. Stats appear once the discovery pipeline promotes at least one strategy with this family tag, or once a multi-family blend that includes it earns a champion slot.

Signal rule

sec_13f_aggregate delta_n_filers in top 85th percentile of trailing 20-quarter own-history -> SHORT at T+1 after the 45-day 13F filing lag from quarter-end; hold 60/90 trading days.

Data dependencies

  • daily_prices

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

  • sec_13f_aggregate

    Worker data table — see services/worker schema.

Expected edge

Paper alpha
~-6% over 60-90d on top decile
Paper window
T+45 to T+135d

~-6% on top-decile breadth-jump short over 60-90d (CHS 2002).

Example tickers where this is likely to fire

Illustrative only — the signal fires based on the live data, not a fixed list.

Related families

Explore thirteen f breadth overpriced short on alphactor.ai

See which tickers this family is currently firing on, with live signals and rankings.

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