When these trends occur, they are often long-lasting enough for the strategy to make a profit on them. On the other hand, the strategy experiences a small controlled loss when a trend fails early. Under sustained falling market prices, the strategy will shift to defensive and strictly own cash. Historically the strategy has shown to be in cash for months at a time, while it is invested around 75% of the time on average. The strength of this strategy lies in participating in the most robust movements under favorable market conditions but acting defensively and out of the market (i.e., being in cash) during sustained downward trends.

Because the strategy solely reacts to market moves, it never manages to buy at the lowest- or sell at the highest point. It will, however, never second guess the market. The profit distribution for the strategy is skewed, meaning that the strategy takes many small losses but occasionally profits largely.

This focus is different from conventional thinking, as the emphasis is less on constructing a stable 'emotional journey' and more on the end goal; risk-adjusted returns. PHC Momentum invests in medium-large-sized companies from selected global markets (including North America, Australia, and Europe).