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. At ODDO BHF Asset Management, we believe how you invest in US equities matters as much as how much.
For investors, the question is therefore not whether to invest in US equities, but rather how best to do so.
Stefan Braun
Globaler Co-Leiter Systematische Strategien & quantitatives Research
Why 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. 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.
Navigating Short‑Term Challenges without Losing Sight of the Big Picture
Volatility is part of the journey — innovation is the destination
Market reactions can sometimes be excessive, as witnessed during recent corporate announcements. Volatility can emerge at any time. Yet the foundations of the US equity market remain robust:
A large and diversified domestic economy
A dominant services sector
Corporate profitability that continues to surprise on the upside
Solid earnings growth expectations, supported by strong balance sheets and productivity gains
On the policy front, targeted fiscal measures and a more accommodative stance from the Federal Reserve continue to support liquidity and market valuations.
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%
MSCI Emerging Markets: 7.7%
This long‑term superiority reflects not only scale, but innovation, competitiveness and adaptability.
Capturing Trends with Momentum Investing
Why momentum works
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 early
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 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 to capture US equity upside 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 to minimise emotional bias and deliver consistency across market cycles.
Identifying high‑quality trends
We assign each stock a momentum score based on both medium‑ and long‑term trend characteristics, focusing on stability and consistency across market environments.
Portfolio construction & risk management
Using quantitative optimisation, we build a diversified portfolio with:
Controls on sector, style and single‑stock concentration
Tracking error limits
Controlled portfolio turnover to enhance stability and reduce transaction costs
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 conviction.
Investors seeking long‑term outperformance relative to the S&P 500 can access the strategy via:
