Momentum trading by institutions

S. G. Badrinath; Sunil Wahal

doi:10.1111/1540-6261.00502

Momentum trading by institutions

S. G. Badrinath, Sunil Wahal

Research output: Contribution to journal › Article › peer-review

148 Scopus citations

Abstract

We document the equity trading practices of approximately 1,200 institutions from the third quarter of 1987 through the third quarter of 1995. We decompose trading by institutions into the initiation of new positions (entry), the termination of previous positions (exit), and adjustments to ongoing holdings. Institutions act as momentum traders when they enter stocks but as contrarian traders when they exit or make adjustments to ongoing holdings. We find significant differences in trading practices among different types of institutions.

Original language	English (US)
Pages (from-to)	2449-2478
Number of pages	30
Journal	Journal of Finance
Volume	57
Issue number	6
DOIs	https://doi.org/10.1111/1540-6261.00502
State	Published - Dec 2002
Externally published	Yes

ASJC Scopus subject areas

Accounting
Finance
Economics and Econometrics

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10.1111/1540-6261.00502

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Momentum trading by institutions

Abstract

ASJC Scopus subject areas

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