FYI: Momentum is the tendency for assets that have performed well (poorly) in the recent past to continue to perform well (poorly) in the future, at least for a short period of time. Mark Carhart, in his 1997 study On Persistence in Mutual Fund Performance, was the first to use momentum, together with the Fama-French factors, to explain mutual fund returns. Research on momentum, however, was initially published by Narasimhan Jegadeesh and Sheridan Titman, authors of the 1993 study Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency.
Regards,
Ted
http://mutualfunds.com/education/who-trades-on-momentum-and-who-is-on-other-side/
