Wright Momentum

Take advantage of the trending market. A momentum strategy is specifically built to take advantage of the bull market. Momentum works when people herd towards stocks (due to structural reasons), and high momentum stocks emerge as bull market winners.

In the continuing bull market, our Momentum strategy has given 90% returns in 10 months which is 50% better than the Nifty.

Why Momentum and How? - Momentum is a behavioral factor. A momentum-based investing approach can confuse investors who are often told that chasing performance is a mistake and it is impossible to time the markets.

Yet as a systematic factor, it sits on decades of outperformance. At Wright Research, we look at multiple momentum and breakout signals to create this portfolio focusing on diversification and keeping risks low.

Where do you invest? A momentum strategy is sector agnostic and dynamic. We invest in cyclical sectors when markets are in the growth phase and defensives when markets are consolidating. We have a smallcap bias when smaller stocks are in flavor but switch to bigger stocks otherwise.

Even then, we keep the turnover very low by rebalancing monthly and changing only 0-4 stocks per month.

Wright Momentum has a robust risk management policy. As a result, the portfolio is generally well-diversified.

In difficult times, we have a deallocation policy. For example, we systematically shift money away from equities to safer liquid bees in drawdown times for equity markets until the drawdown settles.