Topics Covered:
What momentum investing is and how it differs from growth investing
The mechanics of cross-sectional momentum and relative strength
Common misconceptions about momentum strategies
How fundamental data can enhance momentum strategies
The significance of continuous vs. dynamic momentum
Portfolio construction, sector concentration, and rebalancing approaches
Momentum performance across different market caps and geographies
The risk profile of momentum vs. value strategies
Momentum crashes - what they are and how to mitigate them
Tax efficiency of momentum strategies
The impact of passive investing on momentum strategies
Optimal factor combinations for diversified portfolios
Timestamps:
0:00 - Introduction
1:01 - Discussion of why Nvidia might not always be in a momentum portfolio
3:53 - Explanation of cross-sectional momentum and relative strength
5:28 - Distinguishing momentum from growth investing
7:24 - Example of momentum's adaptability across market sectors
8:49 - The complexity of implementing momentum strategies
10:56 - Timeframes over which momentum works effectively
12:30 - Why momentum works: behavioral vs. risk-based explanations
14:01 - Addressing transaction costs in momentum strategies
16:45 - Tax efficiency of momentum strategies
19:11 - Portfolio management considerations
22:12 - Fundamental momentum vs. price-only momentum
24:27 - Discussion of "continuous" vs. "dynamic" momentum
28:36 - Momentum across different markets and geographies
31:34 - Balancing strategy evolution with long-term principles
34:48 - Rebalancing frequency vs. turnover
36:42 - Portfolio size and diversification approaches
38:52 - Managing sector concentration
39:09 - Understanding momentum crashes
41:18 - Risk comparison: momentum vs. value strategies
44:06 - Benefits of combining momentum with other factors
45:25 - Evolution as a momentum investor
46:40 - Impact of passive investing on market structure
48:37 - Closing questions on contrarian beliefs and investing lessons
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