Adaptive Momentum

Adaptive Momentum follows an active quantitative rule based investment strategy focused on capturing price momentum in equities. The portfolio uses algorithm based stock selection to identify stocks with strong price uptrend and momentum and aims to ride winners while pruning losers early. The methodology ranks the universe of NSE listed stocks based on volatility adjusted returns and filters securities using price, volume and momentum parameters before portfolio inclusion. The strategy typically holds about 20 to 30 long only stocks selected from the broader listed universe and rebalances frequently to maintain exposure to securities with continuing momentum. Position sizing begins with allocations below about 4 percent per stock and can increase toward roughly 9 percent as momentum persists. If suitable equity opportunities are limited the portfolio may allocate to cash or alternate assets such as gold or bond ETFs showing stronger relative momentum. Stock examples illustrating the strategy include Rallis which gained about 35 percent over a short period, IOL Chemicals which gained about 101 percent in a few months and Aarti Drugs which gained about 276 percent during strong price momentum phases, while losses are cut quickly as seen in positions such as Deepak Nitrite or Bajaj Finance. Sector agnostic. Market cap agnostic.