Re: actual yields!

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Posted by Bill on April 24, 2006 at 13:28:58:

In Reply to: Re: actual yields! posted by Mark on April 24, 2006 at 12:51:19:

: : Thank you! Thank You! The actual yields help so much in fund comparisons. Now if I can push my luck a little: need a report capability to sum the 1mo,3mo,6mo, and 1yr yields (called MOM). Then have the ability to sort the investments by that sum (MOM). Again Mark, thanks.

: : Bill

:
: Hi Bill,

: Yes, finally, non-annualized yields... :) I am not familiar with MOM, is this something many people use?

: Thanks,
: Mark
: --
: Fund Manager - Portfolio Management Software

Hi Mark,

Yes, it is used by many; MOM stands for momentum. It assumes that the best predictor of short-term future performance is the short-term past performance. The probability of a fund that is currently performing to continue to outperform for the short-term is very high. When a fund falls out of the top quartile of its peers by using a MOM score, it is replaced. I have used this method for years and it does produce results much greater than the market. MOM=sum of the yield values for 1mo, 3mo, 6mo, 1yr. As you can see, the near term results are weighted much more heavily than the 1yr yield. And really, you don't have to make as many trades as you would think. Some leave out the 1mo numbers, but I like the option to include them if I wish.

Replies:

• Re: actual yields! Mark 15:04:27 04/24/06 (0)