Form 13F (Mis)Filings

Abstract

We examine the reliability of Form 13F filings and find significant reporting errors. Using a hand-collected sample of 13F filings by bank holding companies, we show that (1) reported holdings do not always appear on the SEC’s Official List, (2) market prices of Official List securities are often inaccurate, and (3) amended 13F reports are sometimes less accurate than the original filings. Overall, our evidence shows that reliance on 13F filings is unwarranted for both private investors and capital markets researchers. One important implication of our findings is that investors using 13F-based (i.e., copycat) trading strategies should exercise extreme caution..

Keywords: 13F Filing, Disclosure, Institutional Investor

JEL Classification: D35, G10, G18