Capitalmind Podcast Momentum Investing in India with Anoop Vijaykumar
May 3, 2024
Fund Manager Anoop Vijaykumar and Shray Chandra discuss momentum investing principles and success of Capitalmind Adaptive Momentum portfolio. Topics include difference between fundamental and quantitative styles, why momentum investing works, lessons learned in managing momentum strategy, and how to maximize strategy outcomes.
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Momentum Portfolio Performance
- Capitalmind's Adaptive Momentum portfolio significantly outperformed Nifty over five years, returning 353% vs. 216%.
- It achieved this with comparable volatility, demonstrating risk-adjusted returns.
Fundamental vs. Quantitative Investing
- Fundamental investing analyzes company-specific factors, external environment, and competitive landscape to estimate fair value.
- Quantitative investing uses data-driven metrics and statistical models to predict future returns.
Basketball Team Analogy
- Anoop Vijaykumar uses the analogy of drafting basketball players to illustrate the difference between fundamental and quantitative approaches.
- He highlights the risk of spurious correlations in quantitative analysis using the example of Bangladesh butter production predicting the S&P 500.