Momentum Funds for Small Investors - WSJ

Momentum Funds for Small Investors - WSJ - Momentum Funds...

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See a sample reprint in PDF format. Order a reprint of this article now FUND TRACK JULY 14, 2009 Journal Community Discuss mutual funds with reporter Daisy Maxey. By DAISY MAXEY Hedge-fund firm AQR Capital Management LLC is expanding its nascent mutual-fund lineup into an area that has long been rejected by some academics -- momentum investing. The Greenwich, Conn., company last week launched a set of indexes designed to capture the returns of stocks that have positive momentum, along with three no-load mutual funds that will track those indexes. The AQR Momentum Fund, AQR Small Cap Momentum Fund and AQR International Momentum Fund will track the AQR Momentum, Small Cap Momentum and International Momentum indexes. "There have been momentum strategies in mutual funds for some time, but the new part is that it's systematic and it's an index," said John Rekenthaler, vice president of research for fund tracker Morningstar Inc. Basically, momentum strategies assume an asset class will persist in its relative performance for some period of time. AQR's new indexes are constructed using the top one-third of stocks that have outperformed their peers in the latest 12 months and weighing them according to their market capitalization. The large-cap index will examine the 1,000 largest U.S. stocks by market capitalization, while the small-cap index will
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This note was uploaded on 02/06/2012 for the course MGMT 411 taught by Professor Clarke during the Spring '09 term at Purdue University-West Lafayette.

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Momentum Funds for Small Investors - WSJ - Momentum Funds...

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