Form 13F (Mis)Filings
43 Pages Posted: 14 Jul 2016 Last revised: 25 Oct 2016
Date Written: October 15, 2016
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
Suggested Citation: Suggested Citation