Here's a brief deck of Momentum portfolio offered at Capitalmind Wealth PMS. For more details, please contact us at connect@capitalmindwealth.com

1. www.capitalmindwealth.com
THE MOMENTUM
PORTFOLIO
Capitalmind Wealth

2. Momentum
In A Nutshell
Capitalmind Wealth

3. The Trend Is Your Friend
Stocks That Have Recently Outperformed Are Likely To
Continue For Some More Time
Consider Several Behaviour Biases:
Over Reaction : Good News Means Buy At Any
Price
Herding Behaviour : If Everyone Is Buying I Want
It Too
Confirmation Bias : I Bought It So It Must Be
Initially recognised as a factor in US academic research
in the 1990s : https://www.jstor.org/stable/2328882
Investing
In Momentum
Capitalmind Wealth

4. Capitalmind’s Wealth
Momentum Strategy
The Strategy: Uses Time
Series Momentum
Filters further
1 2 3
Ranks stocks on Risk and
Momentum returns
(proprietary algorithm)
○Volatility extremes (Don’t buy
stocks that are too volatile)
○Liquidity (>3 cr. per day – don’t
buy stocks you won’t find sellers
for)
○Human sanity filter (manual
override for known rogues)
Buy top 30 momentum
stocks every month
4
Every Month: Replace
stocks that have lost
momentum (do not meet
criteria)
5
Reinvest dividends
6
Avoid special action
stocks (Mergers,
acquisitions etc.)
7
Capitalmind Wealth

5. Risk &
Mitigation
01 02
Concentration:
Prone to
manipulation, so
strategy diversifies
into at least 25
stocks (We do 30)
03
Liquidity (How to
exit if stock has no
buyers?): Buy
stocks that are
reasonably liquid
for a period of
time. > 3crore every
day
News: Exit stocks
that show sudden
move of more than
20% down
04
Manipulation:
Human filter to
avoid known
rogues, exits on
adverse events
Capitalmind Wealth

6. Special
Strategies
●Will go to cash if no
opportunities
●Cash is a position. If only 20
stocks meet criteria, each
stock is still 3%.
●No shorting in initial edition
●If introduced, will be a
regular position, as SEBI
doesn’t allow leverage, Max
40% short, 60% long.
●Avoid demerger or
buyback stocks
●Will sell if action is
announced after we buy
01 02 03
Going to cash Going short Corporate actions
Capitalmind Wealth

7. Why Buy
Momentum
Outperforms most other strategies
Strong Risk Management
We pick 30 stocks to diversify risk
Ensure greater than 3 crore daily liquidity for
quick entries and exits
Human filters - sanity checks to avoid known
Back by Research and Performance
Capitalmind has run a Momentum Portfolio since
2016 with strong results
Momentum is well researched and works across
global stock markets
Priced in line with most mutual funds and no
performance fee
Capitalmind Wealth

8. Allocating To
Momentum
Strategy involves
monthly
transactions and
taxes but provides
an opportunity for
good returns
Suggestion: 10% to
25% of long term
portfolios should be
allocated to
momentum
Works very well in
strongly trending
markets
Fee: 1% per annum No entry fee, exit
fee, performance fee
or lock-ins
Capitalmind Wealth

9. Contact
New Interest :
connect@capitalmindwealth.com
Existing Members:
support@capitalmindwealth.com
Address:
https://goo.gl/maps/gkkfkzVo3Zu
3rd floor Prakash Arcade, #2323, 17th
Cross Road, 1st Sector, HSR Layout,
Bengaluru, Karnataka 560102
Members @
#capitalmindwealth
+91 6361 531 722
Disclaimer: Nothing in this presentation should be construed as financial advice. As a SEBI registered portfolio manager, Wizemarkets Analytics Private Limited, the owner of Capitalmind Wealth, must understand your risk
profile before suggesting you actual investments. Please do your own research before placing any trades based on the information in this presentation. Unless otherwise specified, all return figures shown above are for
illustrative purposes only.Actual returns will vary greatly and depend on personal and market circumstances.
Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Before investing, consider your investment objectives and Capitalmind’s charges and expenses.
Capitalmind Wealth