Thoughts on IMTM fund?

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Thoughts on IMTM fund?

Post by freyj6 » Wed Oct 11, 2017 6:44 pm

I've been interested in this fund for a while, since a big part of my portfolio has been in MTUM for quite a while now and I think momentum is a well-supported factor.

However, I'm hesitant because of the following factors:

1. It has only 50 million invested in it.

2. It has 300 holdings rather than 127 like MTUM, so perhaps a lower momentum loading.

3. I'm unsure if there are different structural factors that make it different from MTUM.

What are you thoughts on this fund? Is it essentially the same thing as MTUM but international, or are there important differences? Would you invest your own money in it if you believe(d) in the momentum factor?


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Re: Thoughts on IMTM fund?

Post by garlandwhizzer » Thu Oct 12, 2017 8:39 pm

MOM is a well supported factor on academic research but funds which seek to exploit it usually fail. MTUM is an exception, doing well because relative to other MOM funds, it keeps costs low, trades less, is long only, and operates only in the LC space. If IMTM is run by the same team it may use the same strategy. I don't have a clue how IMTM will do going forward and its low asset level is a huge negative IMO, with trading cost frictions and illiquidity concerns. Buying it now is a bit like gambling if you like that.

Garland Whizzer

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