Found 7 Articles.
A hedge fund in the U.K. that’s made an international reputation on momentum investing is phasing out its momentum investing products. The head of the firm says too many people are following the strategy, and that’s causing problems. He talks about “steeling” himself before making the decision. Yet this is no dramatic rift with the […]
Trend following, sometimes known as momentum investing and other names, is an important tool for many investors. Few investors use only trend following to invest successfully, but it is a component of the toolbox used by many investors. This article goes into some detail about the history of trend following, the research supporting its use, […]
“Factor investing” is a popular investment theme these days, though most people have taken to call it “smart beta” investing. This article discusses momentum as an investment factor and cites a number of studies that explored momentum. The conclusion is that momentum is more reliable than other investment factors and has delivered strong results in […]
People are asking, “Should I avoid stocks since the indexes are hitting all-time highs?” One way to answer that question is to point out that stocks have been reaching all-time highs for a while, and then they continue to hit new all-time highs. This article presents that information in a more sophisticated way. It’s basic […]
Academic research shows that momentum investing is one factor that can be used to “beat the market” over time. But there’s a lot of misunderstanding and false information being spread about momentum investing, according to one of its “discoverers” Clifford Asness of AQR Capital. In this paper written with several others he reviews the research […]
Trend following is an important component of my investment strategies. I know it works. But if you need some more evidence, take a look at this post. It cites two papers demonstrating that trend following produces higher returns at less risk. The strategy explains the strong performance of Managed Futures funds from the late 1980s, […]
The best way to profit in the markets is to latch on to a trend and profit from it. No matter what is happening with the market indexes, there almost always is a bull market some where in the investment universe. All you have to do is find it. That’s the theory behind my Aggressive […]