Analytics

StarMine Smart Holdings Model

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  1. Overview
  2. Features & benefits
  3. How it works
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An overview of StarMine Smart Holdings Model

The StarMine Smart Holdings Model (SH) is a global stock selection model that ranks stocks based on the expected future increase or decrease, in institutional ownership. The underlying hypothesis of the model is that institutions show a high conviction in buying companies with particular characteristics, where these characteristics are fundamental factors such as price/earnings and debt/equity ratios.

At the core of the model is an algorithm that reverse engineers each fund's purchasing profile based on the underlying fundamental factors of the companies a fund is buying. Once we have the purchasing profile of each fund, we compare the fundamental factors of every stock globally to each fund's purchasing profile to determine the alignment between the stock and the fund. We then aggregate the results across all funds and rank each stock based on the collective appeal or demand for it relative to all other stocks by region.

Key Facts 

  • Geographical coverage
    Global
  • History
    From 2000
  • Data format
    CSV
    JSON
    Python
    SQL
    Text
    User Interface
    XML
  • Delivery mechanism
    API
    Cloud
    Deployed/Onsite Servers
    Desktop
    Excel
    FTP
    SFTP
  • Data frequency
    Daily

Features & Benefits

What you get with StarMine Smart Holdings Model

  • Smart Holdings is a predictive model that accurately predicts which stocks will see an increase or decrease in institutional ownership.
  • A long/short trading strategy based on Smart Holdings ranking produces high Sharpe ratios and annual returns.
  • Smart Holdings model uses 25 common quant factors to generate screening profiles for each fund.
  • The final component combination provides a low volatility signal that produces attractive risk-adjusted returns with minimal draw-downs and is relatively uncorrelated with common factors.

RELEVANT USE CASES

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How it works

Accessing the dataset

This dataset can be used by the following products. Talk to us to learn more about different packages and offerings.

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