A smaller fund universe may simplify analysis and allow insight into the driver of returns. Here is the equity curve from the top Fidelity fund by momentum from this list: FATEX, FBTTX, FDXAX, FEIRX, FLSTX, OPPAX. The holdings of these funds are summarized below and equivalent ETFs will be identified in a later post if available (expense ratios are >1%, although average hold time is only 2-3 months).
|FATEX||1.09||Tech, aapl, goog, ebay etc.|
|FBTTX||0.87||Biotech, gild, amgn, celg etc.|
|FDXAX||1.15||Mid-cap, hfc, ksu, ame|
|FEIRX||1.06||Equity income, jpm, cvx, cmcsa|
|FLSTX||1.42||Leveraged co. stocks,lyb, sci, aes|
|OPPAX||0.94||erixf, ebay, sap, sie, ubs|
Annual return 30% (including periods in cash – green sections of equity curve)
Max drawdown 15%, sharpe 1.5 (exposure 50%).
The green sections in the equity curve are cash (no trade) therefore several large rallies were missed in these results: 2006, 2010 and 2011.