Momentum Fund

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Momentum Fund

A mutual fund that invests predominantly or exclusively in securities experiencing short term price increases. That is, a momentum fund buys stocks in companies that are on an uptrend and sells them when the trend reverses itself. This kind of mutual fund was relatively popular in the 1990s but has since fallen out of favor because of concerns over its sustainability. It is informally called a momo fund.
References in periodicals archive ?
Momentum funds are sometimes disparaged as simple "trend jockeys" by other money managers, and frequently misunderstood outside the industry.
A programme called Momentum funds the provision of free education and training projects for those who are unemployed for 12 months or more.
Pretty quickly we came up with three different momentum funds and a diversified arbitrage fund.
3950, with momentum funds and real money names looking to sell rallies.
Earnings momentum funds are for investors who have an appetite for risk.
And it's not just the so-called momentum funds that are piling on with the herd that run up stock prices to unreasonable levels.
In June, the company completed a 1-for-3 reverse split that moved the company back up to a full Nasdaq listing, which they suspect provided momentum funds with a greenlight to buy the stock.
Additional investors include PA Early Stage Partners, The Cairnwood Group, Momentum Funds I & II, Arden Capital and Eastern Technology Fund and private investors.