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Welcome to Animal Spirits, a show about markets, life, and investing. Join Michael Batnik and Ben

as they talk about what they're reading, writing,

and watching. All opinions expressed by Michael and Ben are solely their own opinion and do not reflect

the opinion of Ridholt's wealth management. This podcast is for informational purposes only and

should not be relied upon for any investment decisions. Clients of Ridholt's wealth management

may maintain positions in the securities discussed in this

podcast.

Welcome to Animal Spirits with Michael and Ben.

Michael, Eugene Fama, Mr. Efficient Market Hypothesis man himself, creator of the three-factor model.

He says, what do you think is the most, the world's best factor? How did he say it? Can't remember the exact quote. Oh, yeah. Maybe the most robust factor. I can't remember it. Anyway, he said it's momentum, which is interesting. And Cliff Asnett says that great story where he said, he wanted to do his thesis paper on momentum stocks, And Fama didn't really said, you know, if it's in the data, it's in the data. And it is interesting. You bring up the point on this episode that just there's not a lot of money. And I think, I'm guessing MTUM is the biggest momentum fund that exists. I was just looking. It's not, it's not even that big,

relatively speaking. It's like less than $20 billion. Yeah, $19 billion. So there's way more money.

So MTUM is probably the biggest momentum fund, unless someone wants to correct me. It's about $19 billion.

The Vanguard value index fund, VTV, has $150 billion billion so momentum is not even close in terms of

now some people say well if you own an index fund that's kind of like momentum no the quant people

would say absolutely not the index fund people like me would say it's it's kind of momentum no it's

it's like long term momentum fine it's not the quant version of momentum that looks at the previous six, nine, 12 months or whatever. So on today's show, we talked to Lance Humphrey. Lance is a head of portfolio management with Victory shares and Victory Capital. And they have a whole suite of momentum products, but they also have a value component to them. So it's value and momentum, which is interesting. It looks at both of these. And it's kind of a composite thing, and he

explains the whole thing. But I think it's an apt conversation to have to understand how the

quantitative side of momentum works. And not just like the chasing performance. I think some

people assume that the recency chasing performance is momentum. They're actually systematic ways to do it.

So we get into that today.

So here's our talk with Lance Humphrey from Victor Capital.

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