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Momentum strategies inside quantitative funds earn money only while recent winners keep winning and recent losers keep losing.
Treasury move to expand its debt buyback program with a sharp rally in Moderna shares disrupted that condition from two unrelated directions at once, adding further pressure to trades already unsettled by an AI-related stock sell-off.
The constraint in any momentum book is factor stability.
These strategies hold long positions in recently outperforming assets and short positions in recent laggards, earning the spread as long as those relative rankings persist.
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