TipRanks measures the performance of hedge funds based on information submitted to the SEC. Any hedge fund managing over $100M is required to submit a 13F form to the SEC which lists their current holdings at the end of each fiscal quarter. TipRanks uses this information to determine how each hedge fund performed in comparison to other hedge funds and to the S&P 500. Top hedge funds are determined by those that generate the highest return based on their stock portfolio.
Investors can use the Hedge Fund Confidence Signal to review hedge fund activity for that stock and see how confident hedge fund managers feel about it.