Top Picks Momentum buys and sells stocks based on our Pure Momentum strategy. This strategy identifies low-volatility uptrends, with the assumption that these trends often last longer than expected.

While momentum strategies do not always perform optimally every year, our studies show that momentum, combined with volatility-adjusted portfolio weights, has historically outperformed indices over longer periods of time.

The holdings in the portfolio are based on momentum rankings from the Pure Momentum website. The strategy also allows for discretionary decisions, which means we have the option to exclude certain stocks that do not meet our requirements for various reasons.

Comment

In 2024, Top Picks Momentum has developed better than the Stockholm Stock Exchange, but weaker than the Value & Momentum and Volatility & Quality strategies.

The biggest detractors during the year have been Wästbygg, XSpray and CTT Systems. In addition to these, several healthcare companies have contributed to weighing down the portfolio's performance. The best contributors on the positive side have been Hoist Finance, Ambea and VBG Group.

A hallmark of momentum strategies is that a few big winners account for a significant portion of the returns. The strategy is based on following these winners while avoiding big losers. To benefit from long-term trends, stocks need to be given room to move. We use our Pure Momentum rating to determine when it’s time to get out.

Statistik, Year to Date:

• Return: +21.4% (+12.9%)
• Sharpe: 1,88 (0,77)
• Sortino: 1.45 (0.74)
• Volatility 11.5% (13.9%)
• Tracking error: 10,8% (0,0%)
• Max decline: -10% (-9%)

Development, Year to Date:

Over the past month, Top Picks has outperformed the Stockholm Stock Exchange, with an increase of 1.2% compared to the stock exchange's decline of 1%.

• The largest positive contributors to the portfolio have been TF Bank (+0.86%), EQL Pharma (+0.71%) and Hoist Finance (+0.64%).
• The biggest decliners have been Cavotec SA (-0.54%), Addlife (-0.53%) and Linc (-0.47%)

Changes and current holdings

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