New York (HedgeCo.net) – It has been 45 days since the third quarter ended and that means that 13F reports are due from hedge funds. With the quarter being so volatile and the S&P losing 6.94% during the third quarter, it will be interesting to see what adjustments were made throughout the period.

While tracking the 13F reports isn’t necessarily a great way to track what hedge funds are doing because they are essentially a snapshot of one day’s holdings, they do reflect the tone of hedge fund managers in terms of where they are focusing their efforts. The reports can reflect sector allocation changes and rotations.

At the end of the second quarter, Valeant Pharmaceuticals (NYSE: VRX) was one of the most popular stocks among hedge funds and the stock lost almost 20% during the third quarter. While Bill Ackman and his fund Pershing Square have been adding to their holdings in VRX, I wouldn’t expect that to be the case with all hedge funds. In fact, one fund that has already filed its 13F is Tiger Eye Capital LLC. Tiger Eye owned just over 290,000 shares heading in to the third quarter, but the firm sold every single share during the quarter.

Rick Pendergraft
Research Analyst
HedgeCoVest