Momentum Strategy: How to Turn Market Cycles into Performance

In a financial environment marked by volatility and uncertainty, investors are looking for strategies that can adapt quickly to market changes. Far from being a speculative approach, the Momentum strategy is based on decades of academic research in behavioural finance. With the launch of Ballmont World Momentum Opportunities, we want to make this approach available to all our clients.

What is momentum?

Momentum is a well-documented phenomenon: assets that have recently outperformed tend to continue their upward trajectory in the short and medium term. This behaviour can be explained by several psychological biases:

The herd effect: investors follow market movements, amplifying existing trends.

Underreaction: markets react gradually to new information, creating arbitrage opportunities.

Cognitive anchoring: investors are slow to adjust their expectations in response to new data.

Our approach: multi-signal

Ballmont World Momentum Opportunities is not limited to technical analysis. Our methodology incorporates four dimensions:

Macroeconomics: monetary policies, leading growth indicators

Microeconomics: corporate earnings, sector revaluations

Geopolitics: international tensions, supply disruptions

Market psychology: stress indices, investment flows, valuation asymmetries

This approach allows us to identify emerging trends before they are fully priced in.

A proven track record

Since its inception, our strategy has demonstrated its ability to generate alpha:

2024: +21.5% vs +16% for the MSCI World

2023: +13% vs +11% for the MSCI World

2021: +24% vs +18% for the MSCI World

With volatility controlled between 14% and 20%, our fund offers an excellent risk/return ratio.

Responsible investment

Performance should not come at the expense of responsibility. That is why Ballmont World Momentum Opportunities is classified as Article 8 SFDR, with:

Priority selection of UCITS incorporating ESG criteria

Strict sector exclusions

Regular monitoring of carbon footprint and social indicators

How to integrate momentum into your allocation?

We recommend a core-satellite approach:

Core (70-80%): diversified strategic allocation

Satellite (20-30%): Ballmont World Momentum to generate alpha

This combination allows you to benefit from the stability of a long-term allocation while capturing tactical market opportunities.

Conclusion

Momentum is not a fad, it is a persistent market anomaly that has been documented for decades. With Ballmont World Momentum Opportunities, we put this strategy at the service of our clients within a responsible and transparent investment framework.

Ready to explore this opportunity? Contact us