The new rule proposes that the $100 million threshold be raised to $3.5 billion. Buffett, Icahn and Ackman would still be required to file, as they are giants in the industry. But 90% of other institutions would not. In the first quarter of 2020, 5,293 institutions filed 13Fs. Under the new proposal, that number would have dropped to 549. It's not just a matter of seeing which individual star money managers bought and sold stock. Knowing if institutions are collectively buying or selling certain stocks is important information - and it's useful for companies to know who their shareholders are as well. The strange thing is that the SEC claims it wants to increase transparency in the market, yet this rule will do exactly the opposite... It will hide the transactions and holdings of all but the very largest institutions, keeping average investors in the dark about what the "smart money" is buying and selling. Daniel Collins of WhaleWisdom says... Many managers are known to talk among themselves, sharing ideas and information. They have access to company management that small investors don't.
Given the SEC's emphasis on a level fair playing field, this rule change makes no sense. I completely agree. One SEC commissioner has come out against the proposal. Allison Herren Lee stated, "This proposal joins a long list of recent actions that decrease transparency and reduce both the Commission's and the public's access to information about our markets." Even Goldman Sachs thinks it's a bad proposal. "More information is better than less," it said. I use 13F information all the time when analyzing stocks. I research who is buying and selling what I'm interested in. There are several money managers who I track. If they are starting a new position in a stock, it is often worth taking a good look at. This proposal is not a rule yet. The SEC is still accepting comments from the public. If you'd like to voice your opinion, you can do so here. Click on "Reporting Threshold for Institutional Investment Managers, File No: S7-08-20." I completely agree with Goldman Sachs: More information is better. I can't believe we have to point that out to the SEC... although nothing Washington does surprises me anymore. Good investing, Marc P.S. Institutional investors are just some of the big swingers among Wall Street's "smart money." These major players also include market insiders, like corporate executives... And tracking the movements of 15 insider "Perfect Traders" has scored Chief Investment Strategist Alexander Green's readers chances to double their money. Click here to learn how you can still profit from the powerful technique that Alex calls the "smartest investment strategy of all time." | 
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