I agree that these two funds closing down is probably the result of the rotation away from momentum that’s been going on in the past several weeks. Definitely not the cause. Notice that many momentum assets such as gold and treasury bonds, totally unrelated to SaaS, also sold off recently.
By the way, for what it’s worth, I came across an academic paper recently that shows the performance of momentum factor in equity is quite seasonal. The author went all the way back to 1920’s and found that September is absolutely the worst month for momentum, on average (it’s the only month to have a negative average monthly return for high momentum stocks). Don’t know exactly why. The best months on average for high momentum stocks? December, followed by November, then followed by the first 4 months of the year.
For those interested in this kind of thing, the paper is titled “Causes and Seasonality of Momentum Profits”, by Professor Richard Sias.
Bashuzi