Edgr’s Index consists of stock ideas sourced, from regulatory filings of investment fund managers who have outperformed their peers and relative market indexes. The Edgr Index is compiled by applying statistical and data mining algorithms. The stocks in the Edgr Index are updated on a quarterly basis (i.e. every 3 months).

Investment firms managing investments of more than $100 million are required by the Securities and Exchange Commission (SEC) to report their securities holdings each quarter. These reports, known as Form 13F Reports, are made public 45 days after each calendar quarter end. The Form 13F Report is essentially a list of holdings that large investment funds own. By comparing holdings reported in the current quarter with holdings reported in prior quarters, it becomes possible to infer which stocks are being bought and sold by these money managers.

Our computational models and algorithms process numerous data variables from regulatory filings for SEC registered investment funds. The algorithms are built upon a number of factors designed to identify funds that tend to hold securities long-term and have a higher concentration of high conviction stocks. The index is compiled from securities owned by such funds that our Edgr algorithm identifies as being high conviction stocks.

Edgr Index returns are calculated and back-tested based on an underlying index component (i.e. stocks), for each reporting period. The weighting of each stock position in the Edgr Index is determined by Edgr algorithms. Our calculations demonstrate the Edgr Index’s relative outperformance vs. SPDR S&P 500 ETF Trust (SPY), an exchange traded fund which tracks the S&P 500 Index. Please note that Edgr Index is compiled using multi-factor computational models and multiple data sources. Such computations have an inherent error factor and as a result, stated returns may not be accurate. Updates are made to Edgr’s algorithms in an effort to optimize results. Such updates will impact both the composition of the Edgr Index as well as the back tested performance of the index.

The Edgr Index can be used to determine investment ideas for further investment research. Knowing that each stock in the Index has been sourced, with the help of data analytics, from investment managers with above average track records should give you the confidence to conduct your own research on ideas you feel may be right for your portfolio. Also keep in mind that the Edgr Index is just the tip of the iceberg when it comes to deciding where to invest your capital, you may also browse Form 13F filings of individual funds directly in the app. Please note that Edgr Index is compiled using multi-factor computational models and multiple data sources. Such computations are effectively, our best guesses as to the collection and weighting of variables that have historically been associated with successful acquisitions of stocks by large funds. The inherent limitation is, of course, that the prospective investments of the fund managers sourcing such investment selections do not outperform their peers prospectively. As a result, you should NOT base your investment decisions solely on the Edgr Index and we suggest ALWAYS consulting with your investment advisor before making any investment decisions.

The historical performance of our back tested models suggests that the answer is yes. This is because the Edgr Index is primarily based on the holdings of funds that that exhibit longer holding stock periods. In addition, the Edgr algorithms attempt to differentiate long term stock conviction from short term stock conviction. We provide subscribers with back tested returns for each fund across different time horizons. While not all funds have strong performance as calculated purely from their Form 13F filings, you will find that many do in fact consistently outperform the market benchmarks.

The stocks in Edgr Index are updated on a quarterly basis (mid-February, mid-May, mid-August, mid-November). Stocks which appeared in the prior reporting period and no longer appear in the current reporting period, are assumed to have been sold.

Our algorithms are based on back tested models, which may not be an indicator of future results. Our computational models may have some margin of error. We strongly suggest conducting your own independent research on any stocks shown in Edgr. We are not investment advisors and do not provide any investment advice.

The Edgr Score system uses an algorithmic based approach to identify funds which make good candidates for a 13F replication strategy. A higher score indicates that our research indicates a fund is more effective at consistently outperforming the market than a fund with a lower score. This does not mean you should completely disregard funds with lower scores, as we are still very selective with which funds we track in our database. Edgr scores are recalculated on a quarterly basis to adjust for new information presented in 13F filings. The scores of funds with longer performance track records (5 years+) are less likely to fluctuate compared to funds with shorter track records.

From thousands of investment firms reporting their 13F fillings reports to SEC, Edgr database maintains records on only few hundred firms. Since Edgr focuses on high conviction stock ideas, we back-test performance for top 3, top 5, top 10, and top 20 largest positions only. Only investment firms which meet factor-based methodology developed by Edgr will be included in the Edgr application. Each reporting quartile period, Edgr will publish an index, where an algorithm will select stocks for the Edgr index based on firm records stored in the Edgr database.