Momentum investing is difficult to understand for many investors. While a concept like value that involves trying to buy stocks at a discount to what they are worth resonates with…
Tag: Momentum Investing
Hulbert: A New Approach to Momentum Investing
New research has shown that a more effective way to profit from the momentum effect is to buy the “hottest” factors rather than the best-performing stocks. This according to a…
Momentum Investing - the What, the Why, the How and the Risks
By Justin Carbonneau (@jjcarbonneau) At the most basic level, momentum investing in the context of security selection can be defined as buying securities that have done the best over the…
Study Claims That the Momentum Factor Doesn't Work
A new study from Dimensional Fund Advisors concludes that fund managers “can’t find a way to profit” from the momentum factor, according to an article in Institutional Investor. The study,…
Does Mutual Fund Performance-Chasing Deserve its Bad Reputation?
A recent CFA Institute article discusses mutual fund performance-chasing which it says has drawn criticism. To evaluate how performance-chasing is faring in the U.S., the CFA Institute replicated momentum investing…