Smart Money
Catch-all term for capital deployed by especially well-informed or historically successful investors.
"Smart money" is a financial-industry shorthand for capital moved by especially experienced, informed or historically successful investors — typically hedge fund managers, family offices, investment banks and legendary individuals such as Warren Buffett, Stanley Druckenmiller or Seth Klarman.
Its counterpart is "dumb money" — not a slur but a technical label for retail flows that often act procyclically. 13F filings are the most important public dataset for quantifying smart-money behaviour.
Related terms
Professional market participants such as banks, insurers, pension funds and asset managers that invest with large capital pools.
Alternative investment vehicle with a broad strategy mandate, light regulation and access typically limited to qualified investors.
Investment approach in which retail investors mirror the trades of well-known large investors.