Momentum is the tendency of an asset’s price to continue along its recent directional trend. This market anomaly can be partially explained by how investors pick fund managers and how fund managers are forced into certain actions by investor expectations. An investment strategy that utilizes momentum has shown to be a profitable one, given a long enough time horizon, as far back as we have reliable data. Many funds, Dimensional Fund Advisors included, have incorporated this into their trading strategies so as to profit from momentum rather than add to it. The Economist explains how fund managers may be creating momentum in Double Agents.