Quantitative research confirms that hunting for market bottoms yields suboptimal risk-adjusted returns. Sophisticated capital targets asset persistence. Rather than absorbing structural risks of distressed assets, institutional trend-following capital exploits intertemporal price velocity. We allocate capital to assets exhibiting strong structural expansion, capturing asymmetric upside as systemic inflows drive values past historical ceilings. Alpha is not generated by identifying what is inexpensive. It is extracted by deploying capital into established, high-velocity market persistence.
