Understanding Conviction Score
The metric that reveals which positions actually matter to hedge funds
A Conviction Score is a proprietary 0-100 metric that quantifies how meaningful a position is to an institutional investor. It combines three dimensions: portfolio commitment (weight), action intensity (position change magnitude), and dollar magnitude (capital deployed). A score of 70+ indicates a high-conviction position.
Not all positions are created equal
A $500M position representing 5% of a fund's portfolio signals far more conviction than a $50K position at 0.01%. Conviction Score combines portfolio commitment, position size changes, and dollar magnitude into a single 0-100 metric that reveals which positions truly matter.
Higher Score = Bigger Bet
Focus on positions that funds are truly committed to
Three Dimensions of Conviction
The score combines all three dimensions multiplicatively. All three must be strong for a top score - strength in one dimension cannot compensate for weakness in another.
Portfolio Commitment
How much of the fund's portfolio this position represents. A large portfolio weight signals the manager has real conviction behind the bet. Tiny allocations score low.
Action Intensity
Whether it's a brand-new position or how aggressively an existing one was increased. Bigger moves signal stronger intent.
Dollar Magnitude
The actual capital deployed, scaled logarithmically. A $500M position carries more weight than a $500K one. Small-dollar positions score low regardless of other factors.
Score Examples
Exceptional conviction - concentrated bet with significant capital at high weight
High conviction - massive capital deployed, meaningful portfolio allocation
High conviction - aggressive 100% increase with real dollars behind it
Moderate conviction - modest capital, but notable portfolio weight
No conviction signal - fund is reducing exposure
Why Conviction Score Matters
Filter the Noise
13F filings contain thousands of positions. Most are tiny, legacy, or index-driven. Conviction Score helps you focus on the positions that represent real investment theses.
Spot Real Conviction
When a fund makes a position 5% of their portfolio, they've done serious research. When they add 0.01%, it might just be a basket trade. The score reveals the difference.
Track Meaningful Changes
A fund doubling a 3% position is news. A fund adding 5% to a 0.1% position isn't. Conviction Score weights changes by their actual significance.
Conviction Score is computed for every position change in our database using a proprietary multi-dimensional model. Each dimension (commitment, action intensity, and dollar magnitude) is independently evaluated and then combined multiplicatively, meaning weakness in any single dimension pulls the entire score down. A $500M position at 0.01% portfolio weight scores low (weak commitment). A 200% increase on a $50K position scores low (weak credibility). Only positions that are meaningful across all three dimensions earn a high score. Decreased and sold positions receive a score of 0. A small concentration bonus is applied for focused portfolios. The score is recalculated each quarter when new 13F filings are processed.
See Conviction Score in Action
Browse high conviction positions across all tracked funds. Filter, sort, and discover which positions the smart money is truly committed to.