DelBreadth · Ownership · Chen, Hong and Stein (2002)

Breadth of ownership

Long minus short decile portfolio, value-weighted, market-adjusted. Quarterly, 1980Q3 to 2024Q4.

Expected return · posterior mean, % per year, averaged over the window
Next quarter
2026Q4
2.16%
95% interval −1.20% to 5.49%
Next year
2026Q4–2027Q3
2.14%
95% interval −1.23% to 5.51%
Next five years
2026Q4–2031Q3
2.07%
95% interval −1.41% to 5.58%

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

+95% since 1980Q3 · log scale

Past performance, annualized

Window Mean Vol. Sharpe t
1980Q3–2024Q4 2.24% 12.15% 0.18 1.23
2020Q1–2024Q4 8.11% 17.73% 0.46 1.02
2024Q1–2024Q4 15.26% 14.64% 1.04 1.04

Forecast Sharpe ratio, annualized

Window Mean 95% interval P(neg)
2026Q4 0.18 −0.10 – 0.45 0.10
2026Q4–2027Q3 0.17 −0.10 – 0.44 0.11
2026Q4–2031Q3 0.16 −0.11 – 0.42 0.12
Category
Ownership
Form
Continuous
Data
13F
Sorted on
High minus low
Names per leg
203 long / 201 short median · 176 at the 10th pctile
Original sample
1979–1998