We often are asked to provide access to the 13F-HR reports filed by institutional managers. While we have provided these filings optimized for our platform – ultimately what users want is the data organized in a way that is meaningful. This has something I personally have wanted to do for a long time. However, the problem has always been matching the name of the issuer to some more useful identifier. The actual 13F filings list the issuer name and their CUSIP (Committee on Uniform Security Identification Procedures) assigned identifier. We needed a way to map the CUSIP back to the Central-Index-Key (CIK) assigned by the SEC. Early in our life I approached CUSIP Global Services ( a division of S&P) about licensing the CUSIP so we could link filings to CUSIPs to CIKs. The cost was prohibitive so we have been stuck there.
Recently we discovered another way to map the CUSIP to CIK and after extensive testing are confident in the mappings we generate. Because of this we have started processing the 13F-HR reports.
What we are doing is aggregating all of the data by report quarter and issuer. The SEC requires institutional investors with more than $100 million in securities under management to disclose their holdings in the 13F within 45 calendar days after the end of the quarter. We are parsing all filings made within each window and then combining the data for each individual issuer from all of the filings into one single report. So a report for say Conagra for the 4th quarter of 2018 will be available soon after February 15, 2019 (the deadline for the report). Of course we expect to have to periodically update these summary reports when amendments are filed by the managers.
Our platform already provides access to the beneficial ownership data as reported in the DEF 14A/10-K. The institutional ownership data complements the beneficial ownership table because the beneficial ownership table only contains details about owners of more than 10% of the equity and the ownership of directors and officers. The beneficial owners of 10% are a subset of the institutional ownership reported in the proxy. For example, CAG’s DEF 14A reports only two beneficial owners (other than management) Blackrock and Vanguard with a total of 74 million shares. Our analysis of the 13F filings shows total holdings by institutions to be approximately 305 million shares for the 6/30 quarter. This is almost a 4 fold increase and it also represents more than 75% of the approximately 390 million shares outstanding as of the end of June 2018.
By combining the data from our beneficial ownership tables for directors and officers with the institutional ownership reports we are starting to generate our users will have better measures of these important characteristics of the distribution of equity.
I think we should have a pilot of the institutional ownership data available before the middle of October. You will know this data is available by starting the application and using the Extraction\Preprocessed feature. When the pilot data is available there will be a new entry 13F_PILOT in the Data Tables listing.
If you would like to dive into one of the files while we are completing our final testing please send me an email and I will make one available (for our clients only).