Omega Point Blog

Momentum

Comparing Factor Performance in a Global vs. US Model

March 03, 2019
Typically, the factor trends that we observe in Factor Spotlight are based on our US model. This week, we'll be introducing our worldwide model by taking a look at how some of the major factors have behaved on the global level, compared to what we're seeing in the US.
Read More
Omer Cedar
Omer Cedar

Offensive Recovery Finale — The Model Portfolio

February 24, 2019
Following up on last week's discussion, we conclude our multi-part series on positioning for a potential market recovery, by building and analyzing a model portfolio that internalizes the insights we've gained from prior recoveries. Through the construction of a model portfolio we've uncovered an intuitive insight applicable to the recent recovery so please make sure to read the section...
Read More
Omer Cedar
Omer Cedar

Contemplating a Recovery: adding the idiosyncratic volatility factor to the mix

February 17, 2019

I hope today's post finds you well and you are enjoying your Presidents' Day weekend. In last week’s Factor Spotlight, we sought to associate changes in fundamental factors—growth and profitability—with net momentum, and found that 77% of the time growth and profitability moved in the same direction, so did net momentum. 

Read More
Omer Cedar
Omer Cedar

Offense or Defense? Positioning for a Possible Recovery - Part 2

February 10, 2019
Today we continue our analysis of early stage market rebounds with the goal of helping uncover potential offensive and defensive sector strategies that may be useful for investors in the current market. Last week we tried to find commonalities in net momentum across sectors during recovery periods. The idea being that defensive sectors tend to underperform and more cyclical or “growthy”...
Read More
Omer Cedar
Omer Cedar

Offense or Defense? Positioning for a Possible Recovery

February 05, 2019

Today we're kicking off a multi-week analysis of the early stages of market rebounds. One area of focus is the examination of sectors investors might want to focus on, depending on whether they're seeking to get offensive or stay defensive in the market. Thus, today we will be starting our analysis through the lens of sector performance during previous market rebounds. We'll also share a quick...

Read More
Omer Cedar
Omer Cedar

Factor Spotlight: EOY 2018

December 23, 2018

With the next issue to be published in January, the entire Omega Point team and I would also like to take this opportunity to wish you a peaceful holiday season and New Year filled with happiness and prosperity.

As noted last week, you can now access all past issues of Factor Spotlight on our website, and in this issue we have compiled a list of the top 5 most popular Factor Spotlights of...

Read More
Omer Cedar
Omer Cedar

Profitability is closer to an inflection point

December 16, 2018

I hope all is well as we head into year-end and the holiday season. Before we dive in this week, I’m thrilled to announce that you can now view current and past issues of Factor Spotlight directly on this blog. You can also filter articles based on keywords to more quickly find specific topics you would like to explore further.

Read More
Omer Cedar
Omer Cedar

Momentum Inflecting

September 21, 2018

For the past few weeks, we've been closely following Medium-Term Momentum as it sharply climbed into Overbought territory. While we've talked about this factor a lot recently, it's been a very active signal in both our US and Global models, and we're now observing that Momentum is currently at an inflection point.

As a reminder, we define Medium-Term Momentum as cumulative return over the...

Read More
Omer Cedar
Omer Cedar

Factor Spotlight: Profitability

September 14, 2018

Happy Friday. This week we're going to discuss how Profitability (a component of Quality) is Oversold in both our US and Global models, and provide an update on Medium-Term Momentum (which we had flagged as Overbought last week).

Profitability If you recall our Factor Spotlight note on 4/26/18, we introduced Profitability as a key proxy for Quality. Profitability is a combination of...

Read More
Omer Cedar
Omer Cedar

Factor Spotlight: Momentum Update

September 07, 2018

I hope you've been having a great summer. While factor movement has been relatively quiet this season, we're now seeing the emergence of signal for Medium-Term Momentum factor in both the US and Global models. Usually, when we see this type of movement in both models, it makes for a much stronger signal. 

The last time we discussed Momentum on July 12th, we had flagged it as "Oversold" as it...

Read More
Omer Cedar
Omer Cedar