Re: actual yields!

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Posted by Mark on April 24, 2006 at 15:04:27:

In Reply to: Re: actual yields! posted by Bill on April 24, 2006 at 13:28:58:

: 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.

Hi Bill,

Thanks for the explanation, I understand better now.

Thanks,
Mark
--
Fund Manager - Portfolio Management Software

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