Trendrating launches portfolio momentum rating tool

Added 31st August 2016

Trendrating has launched a new version of its momentum analytics platform that includes a ‘portfolio momentum rating’ to help fund managers reduce risk.

Trendrating launches portfolio momentum rating tool

The feature enables fund managers to run ‘aggregated portfolio momentum analysis’ and optimise strategies by limiting exposure to underperforming stocks and ETFs. Managers can measure a portfolio in terms of the overall momentum exposure, which can be combined with most investment strategies, said the company.

The methodology works via a A,B,C,D rating grade that includes ‘pluses’ and ‘minuses’. In this way it can measure the momentum exposure for whole portfolios, baskets of stocks and indices.

The resulting momentum profile is then calculated on all the components and the specific weightings and synthetized as a grade.

A rating of A, A-, or B+ is usually associated with a portfolio possessing strong exposure to bull trends. A reading of B or B- indicates that 25 to 33% of the holdings are in a bear trend, and an adjustment is advisable in order to effectively manage the risk of losses. Meanwhile, anything below B is a warning signal that 50% or more of the holdings are in a downward trend that could impact returns dramatically.

Trendrating CEO Rocco Pellegrinelli calls the ability to accurately measure exposure to the momentum factor a ‘major breakthrough’ in portfolio management.

“Our mission is to provide equity portfolio managers with the most accurate, relevant and actionable momentum analytics”, said Pellegrinelli. “The new release of our solution is another step in facilitating the adoption of momentum metrics at a time when the momentum factor is gaining traction with active as well as passive managers,” he added. 

Kames Income Hub


Vincent McEntegart, manager of the Kames Diversified Monthly Income Fund, explains how he aims to deliver a stable and sustainable income of 5% p.a.*, paid monthly, by investing in a range of asset classes

Square Mile Research

Lazard Emerging Markets
Lazard Emerging Markets

Talking Factsheets is a video service for users...

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address



Investment Strategy




PA Channel Island 2016
PA Channel Island 2016

8th November 2016
The Royal Yacht, Jersey


17th November 2016
The Andaz

PA Emerging Markets 2016
PA Emerging Markets 2016

1st December 2016
The Mayfair, London

Sponsored Content

Investment Strategy