Mooer Stories Behind 10 Star Product Features: Institutional Tracking

As a novice of stock investing, Jojo shares skills that she finds useful for investing beginners on YouTube.

Jojo sees herself as a swing investor and value investor. Her investment strategy is watching the economic trend, sitting on a cash stash when the market is at its highest, and waiting for the downturn in the market to fall to buy at low valuations.

To improve her skills, Jojo closely follows news of investing masters like Warren Buffett and Cathie Wood, as well as the funds they manage. Buffett, as a faithful value investor, has held a large amount of cash in the previous years. On the contrary, Wood's Ark Invest has maintained a relevantly low cash balance. The application of various investing strategies provides a wealth of information and knowledge for investors to learn from.

Jojo was curious to know more about Buffett's portfolio, and moomoo’s institutional tracking① feature offered a tool to help with that.

"The feature showed me that Buffett had recently bought shares of Occidental Petroleum. Check the price chart, you will see that the company had saw a rally in the market since Buffett’s purchase of the shares." She added.

Jojo further explained why she considers it necessary to know Buffett’s action with Dr. Jean-Paul Rodrigue’s Psychology of Bubbles theory. According to the theory, institutional investors enter the market before the bubble blows. After institutional investors buy a stock, it is likely the stock will attract media attention, thereby triggering an influx of the masses, and after reaching a new paradigm, it will reverse to the mean.

She found similar patterns on the price curve of S&P 500, Nasdaq Index, and some ETFs in the past a few years.

Moomoo's product manager Jason, who majored in Finance in college, is a seasoned value investor with over eight years of investing experience. He thinks the institutional tracking feature also provides insights to veteran investors.

With years of investing experience and solid financial background, Jason develops unique methods to value a company. His investing decisions are based on his expected value of the company, as well as the price of its shares.

As a long-term investor, Jason does not change his portfolio frequently. Therefore, lowering the cost of his investments in the long term is important to him. To better gauge whether his cost is high or low, Jason refers to institutional investors and refers to moomoo’s institutional tracking feature.

With this feature, Jason closely follows the actions of big market players who hold the same shares as he does. He checks those funds' portfolio from time to time on moomoo, especially after the release of 13F documents②, which are quarterly reports filed by investment managers to discloses their US equity holdings to regulators.

"Generally institutional investors do not post the average cost of their positions, but we can roughly estimate it through their actions in the market. Are they in a long or short position? What is the transaction price range? The result of such estimations is a critical reference and clue to me. Meanwhile, this is a way to sense the market and sharpen my financial acumen."

①The information regarding Institution investors' portfolio holdings is delayed, since according to 13F, institutional investors only reveal their portfolio holdings quarterly.

②Moomoo updates the institutional investors’ investment holdings mainly based on open market data such as 13F filings.