Before we get into and present a momentum strategy, we want to answer the ‘Why” question. Why should one engage in Quantitative momentum investing? Does it work and does it produce superior returns? First, there is a lot of research on momentum investing – I have read, researched and am convinced that Momentum investing works. A couple of very insightful books helped make the case: Dual Momentum by Gary Antonacci and Stocks on the Move by Andreas Clenow. A rules-based process helps eliminate the emotional and discretionary aspects of investing. As investors, we have all experienced the ups and downs of the stock market and our own stock selections which we may have made based on stock tips, advertisements of the company’s products, analyst commentary, etc. While rules-based investments have been available to the privileged few such as High Net Worth Individuals, Analysts, Hedge Funds, etc., common investors (aka retail investors) don’t have access to such investments. Additionally, there is a level of complexity to implement such a rules-based investment strategy for a common investor.
Our goal at QuantMomo is to enable the common investor to follow a rules-based investment strategy by
QuantMomo intends to provide two momentum strategies covering two stock markets. QuantMomo India will focus on momentum stocks in the Indian stock market with stocks from the NIFTY500 index and QuantMomo USA will focus on momentum stocks in the US stock market with stocks from the S&P 500 Index.
