Mutual Fund Holding Change – 3M

This data item is calculated as the difference between the current mutual fund ownership percentage and the percentage 3 months ago. Suppose, mutual funds held 40% stake in the company 3 months ago and currently they hold only 34%, the ownership change percentage is (34 – 40) = -6%.

Mutual funds have superior research capabilities and perform extensive analysis about the company before investing in it. A high MF stake in a company is considered to be an endorsement about the company’s prospect. A drastic increase or decrease in MF ownership percentage is a signal of potential change in fortunes of the company.