If you’re trying to follow the “smart money” in the stock market, two data sources always stand out: insider trading and hedge fund buying.
Insider trades are made by people who know the business better than anyone, like company executives, directors, and major shareholders. Hedge fund filings, on the other hand, reveal where billion-dollar investors like Warren Buffett, Bill Ackman, and David Tepper are investing in.
But here’s the catch: both insider trading and hedge fund buying can come with blind spots.
Insiders may buy or sell for reasons that have nothing to do with long-term value creation. And hedge fund disclosures are delayed, often arriving after the biggest gains have already happened.
So which should you trust more?
In this article, we’ll break down why insider trading can be more important to track, and the strengths and weaknesses of tracking both insider trading and hedge fund buying.
Let’s dive in!
What Is Insider Buying?
Insider buying refers to when a company’s insiders start buying the stock. Company insiders include:
- Executives: The CEO, CFO, COO, or other top “C-Suite” leaders at a company.
- Board of Director members: Any Director who sits on the company’s board of directors. These are generally experienced business leaders who offer strategic guidance for companies.
- Big shareholders: Anyone who owns more than 10% of the company’s stock.
- Employees with inside info: People who have access to key non-public information. This is the least obvious to track, and won’t typically appear on most Insider Trading trackers.
These trades must be disclosed in a Form 4 filing within two business days of the transaction, making them a relatively timely signal.
Sites like TIKR aggregate a company’s recent insider trading all in one place by quickly pulling the results from these Form 4 filings. This saves investors time while making it easy to find stocks that insiders are buying.
Insiders already receive stock through options or compensation packages, so when they go out and spend their own money to buy their stock, it’s worth paying attention to.
Here are the most meaningful types of insider buying:
- CEO and CFO purchases: Often signal conviction in operational and financial health
- Large dollar buys: Six- or seven-figure purchases stand out more than token amounts
- Cluster buying: Multiple insiders buying around the same time shows shared conviction
- Buying after a selloff: Insiders stepping in to buy shares after a weak quarter or bad headline can signal they think the stock is undervalued
Insider buying can be a powerful tool for spotting breakout candidates or deeply undervalued stocks before the crowd.
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What Is Hedge Fund Buying (13F Filings)?
Hedge fund buying is tracked through Form 13F filings, which show the long equity holdings of institutional investment managers with over $100 million in assets under management. These filings are submitted quarterly and are publicly available through the SEC’s EDGAR system.
While they can offer insight into what billionaire investors are holding, 13Fs come with several limitations:
- They’re delayed by up to 45 days. A position disclosed on February 15 may have been entered as far back as January 1, or may already have been sold.
- They only show long positions. No insight into short positions, derivatives, or hedged trades.
- They lack context. A 13F doesn’t tell you whether a stock is a core position, a small tactical bet, or part of a broader pair trade.
- They reflect client capital, not personal money. That removes some of the skin-in-the-game element that makes insider buying so valuable.
That said, 13Fs are still useful for generating long-term ideas.
Some funds, like Pershing Square or Berkshire Hathaway, maintain concentrated portfolios and stick with their holdings for years.
If you spot multiple high-quality funds piling into the same stock, it can be worth researching further the stock more, but it’s not necessarily a buy signal on its own.
Why Insider Buying Is a More Powerful Signal Than Hedge Fund Buying
If you only had time to follow one signal, it’d be more worthwhile to track Insider Buying.
Why? Because insider trades give you:
- Timely disclosures (reported within two business days rather than 45 days)
- Insiders are putting personal capital at risk (not client funds like a hedge fund)
- Insiders have deep knowledge of the business
When a CEO or CFO buys stock with their own money, especially during a pullback, it’s one of the clearest signs that they believe the market is mispricing the company. These signals often precede recoveries or long-term inflection points.
By contrast, hedge fund disclosures (13F filings) are delayed by up to 45 days, they don’t show exact entry prices, and they can often include complex strategies that don’t apply to individual investors.
You might end up chasing a stock long after the move has already happened.
If your goal is to find real-time, high-conviction buying signals, insider activity is far more valuable.
Quickly see whether insiders or hedge funds are buying your top holdings with TIKR (It’s free) >>>
When Each One Matters Most
Insider Buying: Best for Short-Term Timing and Confidence Signals
Insider buying is most valuable when you’re looking for signs of strength in uncertain moments, like after a weak earnings report, during a market correction, or when sentiment around a stock is low. That’s often when insiders step in with their own capital.
When you see multiple insiders buying within a short period (a “cluster buy”), it can indicate a strong internal belief that the stock is undervalued. These moments often precede rebounds and, in some cases, longer-term turnarounds.
Hedge Fund Buying: Best for Long-Term Research and Idea Generation
13F data is more useful for identifying companies that high-performing funds believe in over the long run.
If a stock consistently appears in multiple hedge fund portfolios, it may be worth examining why.
However, due to the lag in reporting institutional investments, 13Fs are more suitable for generating ideas on which stocks the world’s best investors are buying for the long term.
Real-World Examples
Example 1: Insider Buying That Signaled a Turnaround
In late 2022, Meta Platforms (META) faced a wave of negative sentiment. The stock had dropped over 70% from its highs due to ad headwinds, concerns about the metaverse pivot, and broader tech weakness.
Then came a signal: multiple Meta insiders, including CEO Mark Zuckerberg, bought millions of dollars’ worth of stock on the open market. That was the first real show of confidence from the people closest to the business.
Shortly after, Meta stabilized and began a sharp recovery, rallying over 100% in the following year. While not every insider buy results in a rally, these purchases helped investors identify a potential bottom while sentiment was still near its lowest point.
Example 2: Hedge Fund Buying That Left Retail Investors Late
In early 2023, news broke that Warren Buffett’s Berkshire Hathaway had taken a position in Taiwan Semiconductor (TSMC). Many retail investors rushed in, but by the time the 13F was filed, Buffett had already sold about 86% of the position.
Because of the 45-day lag in 13F filings, the public didn’t learn about the sale until months later, long after the stock had reacted to the initial buying news.
This example highlights the main risk of the 45-day delay in tracking hedge fund buys.
See which stocks insiders and billion-dollar hedge funds are buying today with TIKR (It’s free) >>>
The Best All-In-One Platform to Track Insider and Hedge Fund Buying
TIKR gives you everything you need to track insider and hedge fund buying, as well as a full, best-in-class stock research platform.
Here’s what you can do:
Track Insider Buying (Form 4 Filings)
Here’s how to track insider trading activity:
- Use TIKR’s Ownership tab to see Insider Transactions for any stock
- You’ll get fast visibility into who’s buying/selling, what their role is, how much they’re spending, and when the trade was filed
Recent examples:
- In April 2025, Asana (ASAN) CEO Dustin Moskovitz bought millions of dollars worth of shares on the open market, signaling strong conviction just as the stock hovered near recent lows. The stock is currently down, but more insiders are still buying.
Track Hedge Fund Buying (13F Filings)
- On TIKR’s Track Investing Gurus page, you can see the top holdings and recent transactions for over 10,000 top hedge funds.
- This makes it easy to follow what stocks top hedge funds are buying and get new investing ideas.
Recent examples:
- In March 2025, it was reported that Berkshire Hathaway increased its stake in Constellation Brands by 113%, and they now own nearly 7% of the company. This could speak to Berkshire’s long-term belief in the business.
TIKR helps you spot high-conviction buys fast, filter for what matters, and back it up with full financials and valuation data, all in one place.
Create your free account at TIKR.com and start following what the smartest money is doing, before everyone else catches on.
Track insider buying and billion-dollar hedge funds with TIKR (It’s free!) >>>
TIKR Takeaway
It’s often more worthwhile to track insider trading to find stocks that can see big moves, but tracking hedge fund buying is a good way to generate ideas, because these are often stocks that big investors can outperform for years to come.
TIKR lets you track both insider activity and hedge fund moves in one place, so if you’re looking to find the best stocks to buy for your portfolio, you’ll want to use TIKR!
TIKR offers institutional-quality research for investors who think of buying stocks as buying a piece of a business.
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FAQ Section:
What is insider trading, and how is it tracked?
Insider trading refers to stock purchases or sales made by a company’s officers, directors, or significant shareholders. These trades are tracked through Form 4 filings submitted to the SEC and are publicly accessible through tools like TIKR or the SEC EDGAR database.
How can I track insider buying activity?
You can track insider buying using platforms like TIKR, which aggregate real-time insider filings. TIKR lets you filter by role, transaction type, and buying trends to surface high-conviction moves.
Which is more predictive of stock performance: insider trading or hedge fund buying?
Insider buying, especially from multiple executives buying near lows, can be a strong short-term signal. Hedge fund moves can highlight longer-term conviction but with a 45-day delay, it might be too late for retail investors to act when they find out about the purchase. Using both together provides the best insight.
What is hedge fund buying, and where is it reported?
Hedge funds managing over $100 million must file a 13F every quarter, showing their U.S. stock holdings. These filings are public but delayed by up to 45 days, so the information may not reflect the fund’s current position.
How can I track insider and hedge fund activity more easily?
TIKR’s platform combines insider trades and fund holdings into one platform, so you can easily see which stocks are drawing interest from both insiders and hedge funds without digging through SEC filings manually.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
