High-Volume Momentum Strategy Crushes Benchmark with 166.71% Return as Brown Stock Slides to 267th Rank

On July 31, 2025, Brown (BRO) closed with a 1.69% decline, trading at a daily volume of $530 million—a 23.09% drop from the previous day. The stock ranked 267th in trading activity among listed equities, reflecting subdued liquidity amid mixed market conditions.

The stock’s performance aligned with broader momentum-driven strategies that prioritize high-volume equities. A backtested approach purchasing the top 500 stocks by daily trading volume and holding for one day generated a 166.71% return from 2022 through July 30, 2025. This outperformed the benchmark index’s 29.18% return, creating an excess return of 137.53%. The strategy’s success was attributed to its focus on liquidity-rich assets, which effectively captured short-term price shifts driven by trading intensity.

Key contributors to the strategy’s performance included stocks like VICI Properties and Verisign, which experienced volume surges linked to market momentum. The approach balanced risk and reward by leveraging high-liquidity positions, enabling timely exits and minimizing exposure to volatile price swings. Despite variations in market structure over time, the strategy demonstrated consistent adaptability, underscoring the role of liquidity in amplifying returns during momentum-driven periods.

From 2022 to July 30, 2025, the strategy of purchasing the top 500 high-volume stocks and holding for one day achieved a 166.71% return, significantly exceeding the benchmark index’s 29.18% gain. This produced an excess return of 137.53%, driven by the ability to capitalize on liquidity-driven price movements while mitigating prolonged exposure to directional risks.