Why Momentum Works
Date & Time
LocationHotel Schweizerhof Zürich
8001 - Zürich
Language & Category
Equity markets exhibit significant return dispersion in all phases and Trendrating's assertion is that this cross-sectional dispersion in returns makes a compelling case in support of active management as the opportunity to outperform underlying benchmarks is real. Trend analysis lends crucial information to an investment process as it offers a robust framework for caputuring the momentum anomaly with greater accuracy. Strongly trending securities continue to perform strongly which is why the bulk of the market return is generally concentrated within circa 20% of the securities, and investment processes that leverage trend analysis into their stock selection & portfolio construction frameworks, have a greater opportunity to outperform the market and their peers. The challenge for investment professionals is to be able to consistently identify the groups of securities on an ex-ante basis that most likely to display outperformance & underperformance, and thereby focus their selection to these two groups for their long portfolios and short portfolios respectively.
In this seminar, Arun will explain Trendrating's unique Trend Capture Model and the simple mechanism by which it can be intergrated into an investment process in order to materially improve performance.
As always, at the end of the presentation we will refresh you with an Apéro.
Arun has over 11 years of experience in positioning financial data and software solutions in the EMEA Asset Management space for firms such as Northfield, S&P, Axioma, and Barra. He has supported and sold solutions ranging from risk management tools to quantitative research platforms for asset classes spanning equity, fixed income, and multi-asset class. Prior to his sales incarnation, Arun followed an entrepreneurial path by co-founding a technology venture in outsourced development services and Arun's career began in investment research with roles in quantitative equity research at Morgan Stanley (UK) Ltd. in London and at Commerzbank Asset Management in Frankfurt. His primary expertise is in the construction of stock selection models and in systematic portfolio construction methods that include portfolio optimization. Arun holds a Master of Science in Finance and a Bachelor of Science in Accounting.
At present he is the Global Head of Strategy for Trendrating SA, where he publishes white papers on the applied research that he conducts using the Trendrating model, and also works closely with Trendrating's client facing teams in interfacing with current clients and prospects. His background equity research coupled with grounding in risk management and portfolio construction methods, ideally places him in the realm of constructing stock selection signals.