Holder IQ

What is Holder IQ?

A skill score (0-100) for institutional managers derived from 13F filings. We measure whether the funds holding a stock historically add alpha after controlling for market and style factors.

Data Pipeline

• Ingest all 13F filings via SEC EDGAR within minutes of posting
• Normalize CUSIP/ISIN to tickers; join to our securities master
• Track quarterly position deltas (entries, adds, trims, exits)
• Forward returns window: 1, 3, and 6 months after each filing
• Factor-adjust returns using our 18-factor model (Barra-inspired)

Scoring Formula (per manager)

We compute alpha on each disclosed position, aggregate by manager, then convert to a percentile-based score.

• Alpha Percentile (35% weight): risk-adjusted forward return vs. peers
• Win Rate (20%): share of positions with positive factor-adjusted return
• Sharpe (20%): return per unit volatility on disclosed positions
• Consistency (15%): lower variance of alpha across quarters
• Crowding Penalty (10%): discount if holdings are heavily crowded

Security-Level Signals

• Holder IQ Score: weighted average of top-decile managers holding the stock
• Momentum: net shares added/trimmed by high-IQ managers last quarter
• Entry/Exit Pressure: count of top-decile entrants vs. exits
• Crowding: percentile of institutional ownership vs. peers

Aggregation Logic

• We only include managers with ≥8 quarters of history and ≥15 holdings
• Scores are liquidity-adjusted (larger, more liquid names weigh more)
• Recency weighting: last 2 quarters = 60% of score
• Sector/Style neutrality to avoid over-crediting category beta

Limitations & Caveats

• 13F is T+45 days: signals are delayed vs. real-time trades
• No short positions in 13F; we treat exits as neutral unless high conviction
• Non-US and derivatives exposure not captured
• Extreme portfolio turnover can inflate win rate; mitigated via consistency weight

How We Use It in Midas Edge

• Attention Queue: exit pressure and crowding spikes surface as alerts
• Portfolio View: Holder IQ overlay on each position with entry/exit flags
• Watchlists: “smart money momentum” badge when top-decile funds add