METHODOLOGY

13F Score — How We Rate Hedge Funds

A single number — 0 to 100 — that captures a fund's true risk-adjusted edge over the market. No black box. No cherry-picked periods. Just rigorous quantitative analysis of 13F data.

What is the 13F Score?

The 13Foresight Score (13F Score) is our proprietary fund quality rating, computed from a fund's verified public 13F filing history. It measures how consistently a fund generates risk-adjusted alpha — returns above what the market and the fund's own risk exposure would predict.

Scores run from 0 to 100. The S&P 500 (SPY) scores approximately 80, serving as the natural benchmark. A fund scoring above 80 has demonstrated superior risk-adjusted performance relative to passive investing.

0–49
Below Average
50–69
Average
70–79
Strong
80+
Elite (beats SPY)

What Goes Into the Score

The 13F Score is a percentile-based composite of multiple independently meaningful signals. We intentionally do not disclose exact weights — this prevents reverse-engineering and gaming. What we can tell you is which dimensions we measure:

Risk-Adjusted Returns
Sharpe and Sortino ratios over 3 years. Rewards funds that earn returns per unit of risk, not just raw performance.
Alpha (Jensen's)
CAPM-based alpha — the return a fund generates beyond what its market exposure (beta) would predict. Positive alpha = real skill.
Consistency
Batting average and rolling win rates vs. S&P 500. A fund that beats the market 70% of months is more valuable than one that has one great year.
Drawdown Control
Maximum and worst 12-month drawdowns. Capital preservation under stress is a key differentiator between skilled managers and lucky ones.
Information Ratio
Active return over tracking error vs. SPY — measures how efficiently a fund uses its deviation from the index to generate excess returns.
Full-History Gate
Funds with poor full-history information ratios or negative long-run alpha are penalized — even if their 3Y numbers look good. We flag short-lived outliers.

3-Year vs. 7-Year Score

The 3-Year 13F Score reflects recent performance and current portfolio positioning — most relevant for active monitoring.

The 7-Year 13F Score is only available for funds with sufficient history. It reduces noise, filters out funds that got lucky during a single bull run, and identifies managers who have demonstrated durable skill across multiple market cycles. Funds with high 7Y scores are significantly rarer — and more valuable to track.

Data Source & Transparency

All calculations are based exclusively on SEC 13F quarterly filings — public, verified institutional disclosures. We use month-end price data to reconstruct hypothetical portfolio returns as if positions were held continuously between filings.

This means 13F Scores reflect disclosed long equity positions only — not derivatives, short positions, bonds, or private holdings. The score measures publicly traceable performance, which is both a limitation and a strength: the data cannot be fabricated.

See It in Action

13F Scores are live for 7,000+ funds. Filter by score, period, and strategy to find funds that consistently outperform — before the crowd discovers them.

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