FOCUS ON US MOMENTUM
Investing differently,
in the world’s largest market
Harness the long‑term strength of US equities with a disciplined, risk‑controlled momentum approach.
The United States remains the cornerstone of global equity markets. But capturing its full potential requires more than simple exposure. We believe that how you invest in U.S. equities is just as important as how much you invest.
“For investors, the question is therefore not whether to invest in US equities, but rather how best to do so.”
Dr. Stefan Braun
Global Co-Head of Systematic Strategies, ODDO BHF AM GmbH
Why Do US Equities Still Matter?
A cornerstone of strategic asset allocation
US equities represent around 65% of the MSCI All Country World Index and remain a key driver of global portfolio performance. According to us, a commonly accepted rule of thumb is to allocate at least half of global equity exposure to the US.
While investors may currently face a challenging environment — elevated valuations, geopolitical tensions, changing trade dynamics or signs of a cooling labour market — the resilience and adaptability of the US economy continue to stand out globally.
The United States: The Engine of Global Innovation
Where the “old economy” meets the “new economy”
The United States remains the world’s most dynamic and innovative economy:
- 26 of the world’s 30 largest capitalisations are American
- Home to global technology leaders, healthcare innovators, industrial champions and consumer brands
- From the “Magnificent 7” to emerging disruptors, US equities offer exposure to both established leaders and future growth engines
Over the long run, US equities have delivered attractive returns compared with other regions. For example:
- S&P 500: 14.6% annualised over 10 years
- Eurostoxx 50: 8.3% annualised over 10 years
- MSCI Emerging Markets: 7.7% annualised over 10 years
This long‑term superiority reflects not only scale, but innovation, competitiveness and adaptability.
Data as of 31/10/2025
Aiming to Capture Trends with Momentum Investing
Why does momentum work?
Markets move in trends. Stocks that have performed well tend to continue performing well — and vice versa. This observation underpins the momentum effect, one of the most persistent factors documented in academic research.
A momentum strategy seeks to:
- identify trends in equity markets
- capture sustained outperformance
- adapt dynamically to changing market leadership
Unlike static style investing, momentum is fluid. It automatically shifts between growth, value or other themes depending on what the market rewards at any given time.
Momentum Investing: Power Requires Discipline
Why risk control makes the difference
While momentum can be powerful, naïve approaches involve a risk of capital loss and may suffer when trends reverse abruptly or when portfolios become overly concentrated.
Without proper controls, momentum strategies can:
- become excessively exposed to a single sector or theme
- mistake short‑term exuberance for durable performance
- suffer during sudden regime shifts
The key difference lies in disciplined portfolio construction, diversification and risk management.
Our Smart Momentum Approach
A proprietary, fully systematic and risk‑controlled strategy
At ODDO BHF Asset Management, we have been managing momentum strategies for over 20 years. Our Smart Momentum approach is designed with the aim to capture US equity upside and the outperformance potential of the momentum affect, while addressing the inherent risks of momentum investing.
Our investment process is built on two pillars.
The result is a diversified, transparent and rule‑based strategy, designed with the objective to minimise emotional bias and deliver consistency across market cycles.
One Strategy, Multiple Access Points
Available as a Mutual Fund and an Active ETF
Our Smart Momentum strategy was developed by Dr. Stefan Braun and Karsten Seier*, who continue to manage the strategy today. Their long‑standing expertise in quantitative finance and decades of experience across market cycles ensure continuity and expertise.
Investors seeking long‑term outperformance relative to the S&P 500 can access the strategy via:
The momentum approach is exposed to the equity markets, and presents a risk of capital loss, as do all investments of this type. Past performance is not indicative of future results and may rise or fall.
Management Team*
* Current team, subject to change
Learn more. start the Conversation
Whether you are reassessing your US equity allocation or looking for a differentiated, risk‑controlled approach, our teams are here to support you.