EAP_SS23_Guetli_Opportunity

The investment strategy is based on the several times empirically studied Momentum strategy, supplement with a value assessment through key financial figures. We focus on the Health Care, Technology and Energy sector from the S&P 500. Momentum trading is a strategy that involves buying assets that have performed well in the recent past and selling assets that have underperformed. We focus on a 12-1 momentum and rank the stocks based on their performance over that period. The performance is the calculated returns from the last 12 months but excluding the most recent month. We only look at Health Care, Technology, and Energy companies in the S&P 500. Health Care has strong fundamentals and low correlation, making it good for diversification. Technology has been a strong performer due to the digital economy and is expected to continue. Energy is included to diversify and due to growing global demand, with both traditional and renewable companies covered. A certain number of companies with the highest momentum is selected from each of the three sectors. This list is updated once a month, always on the first day of the month, thus ensuring that only the companies with the highest momentum are available to the fund for investment. In addition, the companies with the highest momentum are subjected to a value assessment with key financial figures, which are then evaluated and sorted. From this final list, investments are then made in the 7 most attractive companies from each of the three sectors. Thus, there are 21 companies in our fund. This list is updated once a week and new trades are executed afterwards, thus guaranteeing that the most attractive companies according to our evaluation criteria are always present in the portfolio.