Midcap Momentum Portfolio

Hello @Keyur_Joshi

1. I have not considered dual momentum strategy. My understanding maybe slightly different to what you are indicating. Dual momentum refers to comparison among different asset classes and choosing which one to invest in. This theory was espoused Gary Antonacci. Someone made a good comparison on Gary’s theory and in an Indian context, say for example, the classes we are comparing are Nifty 50, an Income fund (for debt) and Gold. The first step is to check if Nifty 50 did better than Debt. If yes, continue with equity, else shift to Debt. Next step is to check if equity did better than gold. If yes, go with equity, else, shift to Gold. Here complete shift happens from one class to another when we do rebalancing. That is not something I want to do.

2. Regarding COCHINSHIP – while we are looking at absolute momentum (change of price of stock over different look back periods), our selection or ranking is relative. It depends on how this stock has done over certain periods of time as compared to its peers. Though it has fallen, if it has done better (relatively) it will remain in the pf. Of course, COCHINSHIP was moved from one index to another recently.