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HCB
High-Conviction Buy
HCB is a simple winning method to invest in stocks
alongside top-performing hedge fund managers
3 Simple Rules Strategic Insights How It Works How It Performs FAQ
3 Simple Rules
What to Buy
Buy a stock in which a top-performing hedge fund manager
has recently made significant new investments
When to Buy
Buy at a price lower than the manager paid
When to Sell
Sell after the manager has started selling
Strategic Insights
HCB is designed to capitalize on the wisdom of top-performing hedge fund managers.
To enable effective investing alongside these top managers, the HCB strategy is built upon a substantial and diverse data pool of stock market information and investment portfolios of thousands of investment funds.
While some hedge fund managers may perform worse than the market, it's fundamentally important to understand that the HCB strategy isn't about leveraging what average hedge fund managers do. Rather, it systematically identifies the top-performing managers, 1% of thousands, and presents timely invest-alongside opportunities based on their successful investment decisions.
One of the main components of HCB backend is the extensive data aggregation and analytics spanning multiple decades of SEC Form 13F Reports. While some individual investors, particularly day traders, may find SEC Form 13F reports somewhat delayed, for those focusing on long-term fundamentals over short-term fluctuations, these reports, coupled with a required 45-day reporting window, offer unbeatable investment insights and ideas. The HCB method strategically leverages the 45-day timeframe as a compelling safeguard to seamlessly integrate the 13F reports with current market data, empowering users to make well-informed investment decisions.
For the past decade, HedgeMind has consistently applied the HCB strategy with great success, achieved performance on par with the most successful hedge fund managers.
How It Works
You
+
Your Stock
+
Your HCB Manager
=
Your
Stock
Your
HCB Manager
Invest Alongside the Best
=
Invest with Confidence
Is this simple strategy right for you?
Yes,
if you are a fundamental and long-term investor,
if your investment objective is to outperform yourself,
if you believe learning by investing alongside
top-performing hedge fund managers
is the quickest way to grow your
stock investment skills.
Do you have any particular stocks in mind?
If not,
Why not explore Today's HCB Stocks, a list of stocks you can buy now at prices lower than the top-performing hedge fund managers paid.
Depending on your investment preference, you may also find compelling ideas from browsing through the lists of Stock Ideas.
For a given stock you are considering
Once you have decided on a stock, HCB is at your disposal.
The HCB method is powered by HedgeMind’s proprietary recommendation engine, constructed upon our deep knowledge of 1,000+ hedge fund managers and enhanced by our constantly evolving cutting-edge machine learning data analytics.
The recommendation engine will do all the heavy lifting for you. It identifies top-performing hedge fund managers who are the best to invest alongside for your particular stock.
Discover the best to invest alongside
Knowing your interest in a particular stock, the engine will provide up to three managers, often with one labeld
Recommend
, for you to choose from.
Experienced users typically select the recommended manager and move on to the next step.
Nevertheless, you may take a moment to compare the managers based on the ratings that the engine provides, using the criteria as detailed below.
  • Performance, rated on a 0-5 Star scale, reflects how successful a manager's portfolio performs relative to the market, in both short-term (1-Year) and long-term (3-Year). A 4-Star or higher Performance indicates that the manager has outperformed the market.
  • Investment Conviction, rated on a 0-5 Star scale, an indicator we have specifically constructed, through comprehensive data analytics efforts, to reflect the strength of confidence that a manager has in a particular stock investment. High-Conviction corresponds to an Investment Conviction rating of 4-Star or higher.
  • Easy Alongside, rated on a 0-5 Star scale, an indicator we have formulated to project the easiness of investing alongside a manager.

    In general, it's easier to invest alongside an investor with longer stock holding periods, such as Warren Buffett, instead of Stanley Druckenmiller.

    Analytically, our machine learning research finds that the stock holding time is primarily influenced by the manager's investment style and specifically his position size.

    A 3-Star or higher Easy Alongside indicates that the manager will likely hold the position for at least one year, projecting a sufficiently long opportunity for you to invest alongside using the 3 Simple Rules of HCB.

In addition to the above criteria, it's always essential to keep the following in mind:
  • Purchase Price
    To adhere to Rule #2 of the 3 Simple Rules, when you buy, you buy at a price lower than what your selected manager paid.
  • Risk Control
    Our research reveals that top-performing hedge fund managers typically maintain an average weight of around 5% for their top 10 stocks within their portfolios. You can effectively manage your position risk by keeping the position weight under 5% of your portfolio or align it with that of your chosen manager.
  • The importance of "No HCB manager found"
    On certain stocks, the engine may tell you "Currently, no HCB manager found for your stock".

    Top-performing hedge fund managers don't simply buy random stocks; they opt for certain stocks based on their proprietary research and successful investment experience, while also forgoing others. Therefore, it is equally important to recognize the lack of interest from these managers in a stock as it is to leverage their strong interest in a stock.

Your
Stock
Your
HCB Manager
Now you are investing alongside your HCB manager
No more emotional trading.
Especially for individual investors, volatile market periods often trigger emotional responses, leading to impulsive investment decisions driven by fear or greed.
Having your stock attached with a HCB Manager, who is a highly seasoned professional, your focus should be to simply keep tracking his/her latest trading activities.
Keep When to Buy and When to Sell rules in mind, observe how your HCB manager buys or sells to change the position size, and adjust yours accordingly.
Invest with confidence
Trust the process.
Your HCB manager, one of the top-performing hedge fund managers, makes decisions based on his/her powerful collection of professional experiences and resources. Investing alongside your HCB manager helps you become less emotional, more patient and disciplined.
In other words, HCB enables you to invest in stocks with confidence. This confidence enhances your focus, making you less susceptible to short-term market fluctuations, and develop a long-term perspective for success.
HCB
VS
Top-Performing Managers
HCB means you systematically invest alongside the top-performing hedge fund managers. It is a simple, disciplined, and proven way of making money in stocks.
In the past decade, HedgeMind has consistently applied the HCB strategy with great success, achieved performance on par with the most successful hedge fund managers.
PerformanceNumber of
Positions
Average
Return
Number of
Gainers
Average
Return
Number of
Losers
Average
Return
Success
Rate
Gain/Loss
Ratio
HCB

The results are based on the closed
positions of the High-Conviction Buys list.

276
32
175
71
101
35
63 2
Alex Sacerdote
WHALE ROCK CAPITAL MANAGEMENT LLC

Based on the closed stock positions that Sacerdote held for one year or longer.

182
37
135
59
47
24
74 2.45
Stanley Druckenmiller
DUQUESNE FAMILY OFFICE LLC

Based on the closed stock positions that Druckenmiller held for one year or longer.

165
16
113
36
52
28
68 1.29
David Tepper
APPALOOSA LP

Based on the closed stock positions that Tepper held for one year or longer.

165
17
120
31
45
19
73 1.63
Julian Baker
BAKER BROS ADVISORS LP

Based on the closed stock positions that Baker held for one year or longer.

335
12
151
88
184
50
45 1.77
Brad Gerstner
ALTIMETER CAPITAL MANAGEMENT LP

Based on the closed stock positions that Gerstner held for one year or longer.

95
26
53
74
42
34
56 2.15
Performance Information Disclosure
The performance data shown above represents the results of top hedge fund managers based on public holdings information reported on Form 13F with SEC since 2013. The information is intended for illustrative and informational purposes only and are not intended to represent actual performance results of any hedge funds mentioned. The information contained herein is not warranted to be accurate, complete, or timely. You are responsible to validate the information you use in your research of investments. You are responsible for all investment decisions you make and any damages or losses arising from any use of this information.
Frequently Asked Questions
What are the key benefits of using the HCB method?
What sets the HCB method apart from other stock investment approaches?
Is the HCB method good for individual investors?
What do I need to know to get started?
Are there any limitations or potential challenges associated with the HCB method?
What if I don't know what stock to start with?
What if I want to invest alongside Warren Buffett?
Are there any winning examples related to the application of the HCB method?
Are there any additional fees associated with using the HCB method?
Disclaimer
HedgeMind.com is not a registered investment adviser or a broker/dealer. Users are advised that content is provided for educational, informational, entertainment and research purposes only and should not be construed as an offer to sell or the solicitation of an offer to buy securities and is not intended to be, nor does it constitute, investment advice or recommendations. In no event will HedgeMind.com or its members, managers, directors, officers be liable to you or any third party for any damages of any kind arising from your use of any content or other material published or available on HedgeMind.com, or relating to the use of, or inability to use, HedgeMind.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. Past performance is no guarantee of future results. Investment information provided may not be appropriate for all investors and is provided without consideration of your financial sophistication, financial situation, investing time horizon, or risk tolerance. If you invest based on the information provided on HedgeMind.com, it means that you accept terms and conditions of use of HedgeMind.com. You are responsible for any your own actions and are urged to consult with your own independent financial advisers with respect to any investment.