Alpha Prime Momentum Model
Wright Research
Concentrated Trend: High risk, high strategy aiming to generate alpha return with a few stocks
2Y CAGR
43.39%
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Daily Change
Today's change in this smallcase is
7Y CAGR
CAGR (Compounded Annual Growth Rate) indicates the average yearly return generated by a smallcase from the date of launch. Only live data is considered to calculate the CAGR. Thus, this smallcase has given returns on an average every year since Apr 4, 2016
High Volatility
Stock prices move up and down on a daily basis, resulting in fluctuating investment value. High volatility indicates high fluctuation is expected in the investment made in this smallcase
About the smallcase
This exclusive highly concentrated & aggressive momentum investing strategy focusing on a curated set of 10 high-potential stocks displaying strong earnings momentum and trending opportunities. This is a high risk approach is precisely calculated to potentially reap exponential rewards. Our aim is to generate alpha returns that thrive amidst market volatility.
Key highlights include:
- A concentrated, 10-stock portfolio hand-picked from the top 500 corporations.
- Selected stocks demonstrating impressive momentum and potential for higher returns.
- The potential for significant gains in bullish markets and resilience during high-risk scenarios.
- Weekly portfolio rebalancing & high portfolio churn to seize fresh trending & emerging opportunities.
Elevate your investments with our high risk, high momentum alpha generating strategy coupled with intelligent risk management.
Methodology
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Methodology
universe
The Alpha Prime strategy focuses on a highly concentrated selection of 10 stocks drawn from the top 500 publicly traded corporations. This universe ensures that only companies with strong market capitalization, liquidity, and proven performance metrics are considered. By restricting the selection to the top 500, the strategy focuses on well-established companies with sufficient market presence while leaving room to identify high-momentum trends. This initial universe is the foundation for a rigorous filtering process that prioritizes stocks with significant earnings momentum, growth potential, and alignment with current market trends.
research
The research process emphasizes advanced quantitative analysis and AI-driven insights to identify emerging opportunities within the universe. Proprietary algorithms analyze fundamental and technical data, emphasizing earnings momentum, price trends, and sector-specific performance indicators. AI-powered market forecasting models enhance precision by detecting regime changes and anticipating future trends. This research framework is dynamic and evolves in response to new data, ensuring the strategy is aligned with prevailing market conditions. Insights from historical performance, volatility patterns, and growth trajectories guide the identification of the most promising high-momentum stocks.
stockScreening
Screening is a rigorous process that filters down the top 500 universe to identify 10 high-potential stocks. Each candidate undergoes a thorough evaluation based on momentum indicators, earnings growth, price trends, and risk-adjusted return potential. The selection process emphasizes companies that exhibit robust upward momentum, strong fundamentals, and resilience to market volatility. By leveraging sophisticated quantitative models, including machine learning algorithms, the screening process ensures that only the most promising stocks with the potential for alpha generation are included. Weekly re-evaluations are conducted to maintain alignment with market dynamics and capitalize on emerging opportunities.
weighting
The Alpha Prime strategy employs a dynamic weighting methodology designed to balance risk and reward while maximizing returns, and is a flexi-cap strategy. Each stock in the 10-stock portfolio is assigned a weight based on momentum strength, earnings growth trajectory, and volatility metrics. Weighting is adjusted weekly to reflect updated market conditions and ensure the portfolio remains optimized for current trends. This flexible approach, combined with intelligent risk management, allows for efficient allocation of capital to high-performing stocks while limiting exposure to underperformers. By concentrating on high-momentum opportunities, the strategy amplifies alpha generation potential while adhering to a robust risk management framework.
rebalance
This smallcase has a weekly rebalance schedule. Once every week, the research team reviews this smallcase and realign the weights with the selected asset allocation strategy for the next week
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