The Market's Best-Kept Secret | Travis Prentice on Momentum's Surprising Edge

In this episode of Excess Returns, Justin and Jack welcome Travis Prentice from Informed Momentum Company to discuss the ins and outs of momentum investing. Travis brings nearly three decades of momentum investing experience and shares valuable insights about momentum strategies, misconceptions, implementation challenges, and how momentum can be effectively combined with other factors. This conversation offers both beginning and experienced investors a comprehensive look at this powerful investment strategy.Topics Covered:What momentum investing is and how it differs from growth investingThe mechanics of cross-sectional momentum and relative strengthCommon misconceptions about momentum strategiesHow fundamental data can enhance momentum strategiesThe significance of continuous vs. dynamic momentumPortfolio construction, sector concentration, and rebalancing approachesMomentum performance across different market caps and geographiesThe risk profile of momentum vs. value strategiesMomentum crashes - what they are and how to mitigate themTax efficiency of momentum strategiesThe impact of passive investing on momentum strategiesOptimal factor combinations for diversified portfolios