AssetGrowth · Investment · Cooper, Gulen and Schill (2008)

Asset growth

Long minus short decile portfolio, value-weighted, market-adjusted. Quarterly, 1952Q3 to 2024Q4.

Expected return · posterior mean, % per year, averaged over the window
Next quarter
2026Q4
1.28%
95% interval −3.17% to 6.06%
Next year
2026Q4–2027Q3
1.47%
95% interval −3.07% to 6.26%
Next five years
2026Q4–2031Q3
2.12%
95% interval −2.78% to 6.95%

Forecast made 16 Sep 2026, conditioning on this portfolio's OAP returns, which end 2024Q4. The 7 quarters between then and 2026Q4 are unobserved and are integrated out under the model.

Cumulative market-adjusted return

+2,415% since 1952Q3 · log scale

Past performance, annualized

Window Mean Vol. Sharpe t
1952Q3–2024Q4 5.47% 14.40% 0.38 3.23
2020Q1–2024Q4 5.49% 23.33% 0.24 0.53
2024Q1–2024Q4 −38.00% 20.14% −1.89 −1.89

Forecast Sharpe ratio, annualized

Window Mean 95% interval P(neg)
2026Q4 0.09 −0.22 – 0.42 0.30
2026Q4–2027Q3 0.10 −0.19 – 0.42 0.27
2026Q4–2031Q3 0.12 −0.12 – 0.41 0.20
Category
Investment
Form
Continuous
Data
Accounting
Sorted on
Low minus high
Names per leg
348.5 long / 421 short median · 41 at the 10th pctile
Original sample
1968–2003