Small & Mid-Cap Momentum

The Small Cap Momentum strategy focuses on stocks with a market cap of $7b or below that are breaking out to new highs. This system also allocates a portion of the portfolio to short hedge trades, where the allocation to short trades will fluctuate depending on overall market conditions. This system uses a proprietary 4 level scanner comprising technical, fundamental and factor-based quantitative analysis. The bullish, break-out trades are on companies that have fundamentals within the top 20% of all small-cap companies based on earnings growth, revenue growth, cash flow metrics, among others. The bullish trades are typically open for 5 to 20 days. The bearish hedge trades are placed on fundamentally weak companies that have moved into high probability bearish technical setups. Four percent of capital is allocated to each trade.