Glossary term
Active Momentum (AM)
Closelook's momentum-tilted index variant: it holds only the top 60% of constituents ranked by momentum, rebalanced on the parent index's regular schedule — an index-level, rules-based expression of momentum rather than a discretionary trade.
Definition & Mechanics
Active Momentum (AM) is one of the weighting variants Closelook runs alongside each index family. Where the standard variants hold the full constituent list — equal weight (EW: every name sized identically), cap weight (CW: sized by market capitalization), and momentum weight (MW: sized by momentum rank rather than dropped) — the AM variant narrows the holding set itself. It ranks constituents by momentum and retains only the top 60%, dropping the weakest-momentum 40% entirely at each rebalance rather than merely down-weighting them. The surviving names are then reweighted and held until the next scheduled rebalance.
AM vs. the Other Variants
The distinction matters: MW keeps every constituent but sizes positions by momentum strength, while AM changes the roster — it is a selection filter layered on top of the index, not just a weighting scheme. This makes AM the most concentrated and momentum-sensitive of the four variants, and the most exposed to a sharp momentum reversal at rebalance boundaries.
Where It Runs
Closelook runs AM variants across its four index families — CL-RUBIN-AM, CL-HALO-AM, CL-AEI-AM, and CL-AW40-AM — all live since July 2026. Each tracks the same universe and rebalance calendar as its parent index, differing only in the momentum-based selection and weighting rule.