What is momentum investing?

A behavioural phenomenon with a long, reliable history.

Momentum is one of the most enduring and consistent investment effects ever documented.

For more than two centuries, research has shown the same pattern: winners tend to keep winning and losers tend to keep losing.

Traditional investment strategies identify momentum by only measuring recent performance. AlphaScience goes a step further: we have quantified the causes of momentum.

At AlphaScience, we see momentum not as a technical pattern, but as a window into human behaviour.

Momentum’s Empirical Strength

Academic research across centuries, markets and geographies points to the same conclusion:
momentum outperforms growth, value, quality, dividends and most other traditional strategies over the long run.

It is robust, consistent and remarkably persistent.

We’ve created a Library of Evidence dedicated to listing some of the books and research papers related to the subject of momentum.

Our View at AlphaScience

At AlphaScience, momentum is not a trend line - it is a behavioural signature.

Our proprietary metrics analyse the quality, persistence and structure of price behaviour to identify stocks with the highest probability of continued outperformance. Here’s how we do it →

If you wish to get in touch with us to have a conversation or to receive our factsheets, presentation and prospectus, you are welcome to contact us here →