This strategy rides the momentum of positive earnings surprise adjusted for seasonality.
Investment Rationale
We rely on well documented academic research that positive surprise on seasonality adjusted earnings especially PEG ratio shows positive expected returns post earnings drift.
There is substantial academic research that has researched surprise as an early indicator of price momentum. Research has found this factor to be robust across regimes and market conditions. This is a sector and market cap agnostic strategy that also needs constant management and attention. The typical holding period of the stocks are 2-4 months.
