The Momentum Portfolio
The idea is to have 30 stocks which will be only-long, and we replace them once a month with following rules.
• Thirty stocks, all based on price momentum.
• Love the all time highs, don’t bother with lows, focus on graphs trending up and right.
• Trade once a month unless a stock shows major signs of deterioration (in which case you exit, but wait till the next month to add new positions) Target the first monday of the month for the rebalance.
• If there are no opportunities it’s okay to be partly in cash.
• Look for liquidity – prefer stocks that trade 3+ cr. per day on average.
• Start equal weighted but let the winners become bigger while losers are evicted (don’t cut winning positions to get them back to equal weighted)
• The hedge: We would use Nifty options to protect against the downside in the short term.
Below are our posts on entry and exits in Momentum Portfolio
- 5-Jun-17: Portfolio: Introducing The Momentum 2.1 Portfolio
- 4-Jul-17: Portfolio: A 2 Stock Rejig in the Momentum Monthly Change
- 8-Aug-17: Portfolio: Momentum Monthly Changes Replace a Whopping 16 Stocks
- 5-Sep-17: Portfolio: Momentum Monthly Changes a Single Stock
- 3-Oct-17: Portfolio: Momentum Monthly Changes Replaces Four Stocks, and a Performance Update
- 6-Nov-17: Portfolio: Momentum Monthly Changes Replaces Eight Stocks & About 20% In 5 Months
- 4-Dec-17: Portfolio: Momentum Monthly Changes Replaces 10 Stocks. Sets Aside Cash For Later Buys
- 8-Jan-18: Portfolio: We Exit One Stock and Add Six More In Momentum Monthly Rejig
- 31-Jan-18: Portfolio: We Exit Some Positions in the Momentum Portfolio
- 5-Feb-18: Portfolio: Amid Volatility We Replace Six Stocks in Momentum Monthly Rejig
- 6-Mar-18: Portfolio: Replacing 8 Stocks and Adding Two More in Momentum Monthly Rejig
- 5-Apr-18: Portfolio: Replacing 7 Stocks in Momentum Monthly Rejig
- 7-May-18: Portfolio: Replacing 10 Stocks in Momentum Monthly Rejig
- 5-Jun-18: Portfolio: Replacing 11 Stocks in Momentum Monthly Rejig
- 2-July-18: Portfolio: Replacing 5 Stocks and Adding 4 More In Momentum Monthly Rejig
Momentum Performance Posts:
- Portfolios (Unlocked) : Capitalmind Performance in 2016 – A Good Year For The Five Portfolios
- Premium (Unlocked): The Performance of the Capitalmind Premium Portfolios in 2017
- Premium (Unlocked): Analyzing the Returns of the Momentum Portfolio at Capitalmind
Other Momentum Portfolio Posts:
- Introducing the Strong Stock Portfolio: 30 Stocks That Show Promise
- Portfolio: Rebalancing The Strong Stock Portfolio
- Portfolio: How We Will Shape The Momentum Portfolio in 2017
- Portfolio: Adding Third Tranche Of Momentum 2.0
- Portfolio: We Buy Another Lot of the Momentum Portfolio, Replacing Two Stocks
- Portfolio: The March Rejig of the Momentum Portfolio Weeds Out Losers, Rides the Winners
- Portfolio Review: Do we have alpha in Momentum?
- Portfolio: The Monthly Reshuffle Moves 7 Stocks in Momentum, Now 24% in Six Months
- Portfolios (Unlocked): We Exit Momentum 2.0 With 24%, Atlanta With 43% – Both in Six Months