How to find your perfect smart money manager to follow?

Following smart money requires you to find one or a few right ones who fits your investment style and stock interest. Not only you know them well as a hedge fund manager, but you need really to trust their stock picks that will meet your taste. Only then following the smart money will enhance your probability of winning in stock market as an investor, no matter you are a money manager or individual DIY investor.

HedgeMind recently introduced a tool designed to make it easy to find your ideal hedge fund managers to follow. Let me show how:

Go to "Find the Right Hedge Fund Manager to Follow" page athttps://hedgemind.com/hedge-fund-managers/All

You will see options available for you to use. The easiest way is to just enter 5-10 stocks in your portfolio or stock watchlist in "Find Your Match" search box.
For example, HM likes popular "FANG" stocks: FB AMZN NFLX GOOG + TSLA AAPL. After entering these 6 stocks, "Find You Match" shows who among the top hedge fund managers are currently holding most of them. You may or may not know them yet. But you know now they are the ones who may have the same stock interest as you are. Your next step is to learn about each of them and then figure out who is your best match.

Option 2, "30 Must Follow" gives you a choice of 30 top performing hedge fund managers. They are top hedge funds ranked by Forbes or Bloomberg every year. If you are a growth investor with biotech focus, then you may find the names in "Biotech Must Follow" most interesting to you. If your investing style is value, then you can find legendary value investors, Warren Buffett, Seth Klarman, Leon Cooperman to be your best choices.

Option 3 makes your choice even wider. It is up to you to find out who will be your hedge funds out of many billionaires, tiger cubs, or shareholder activists.

Finding a smart money to follow has never been easier. Now find yours now at https://hedgemind.com

AGN lost its shine today

Allergan, the most popular stock among hedge funds on hedgemind.com, suffered a 15% loss after Secretary Lew 's announcement on tax inversions. It is now one more example of overcrowded stock that are doing serious damaging to hedge funds' money making skills after SUNE & VRX have already done so.

Nearly 28% of hedge funds, many of "who is who" of smart money, have a stake as of 12/31/15. Among them 13 hedge funds only just got in during Q4 2015 and bought it as a top 10 holding in their portfolio (see picture). Early buyers before 2015 may still have gains left even after today's big loss or 30% loss since last summer if they exit today. But for many unlucky ones who bought it during 2015 and still holding it, a loss is in the card, just how much they can stop.

Billionaire Andreas Halvorsen & John Paulson have been the top holders, each w/ 5+ mln shares held as of Q4 2015. They both sold 18%+ of their stakes during Q4 2015. But still their holding are significant should they still hold it as of today, the loss is YTD already 25%, ~$380+ mln. But more damages is really to smaller hedge funds w/ concentrated bet like tiger seed Nehal Chopra who were holding 27% her portfolio in this stock alone.

"Cut your losses short" is probably the time for hedge funds to apply this rule of thumb now.

What could we learn from this? When it is too crowded on one side, something will go wrong eventually. Don't overstay your welcome even when time is really good.