DelCOA · Investment alt · Richardson et al. (2005)

Change in current operating assets

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
3.77%
95% interval 0.76% to 6.81%
Next year
2026Q4–2027Q3
3.77%
95% interval 0.72% to 6.83%
Next five years
2026Q4–2031Q3
3.81%
95% interval 0.51% to 6.97%

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

+1,580% since 1952Q3 · log scale

Past performance, annualized

Window Mean Vol. Sharpe t
1952Q3–2024Q4 4.71% 12.65% 0.37 3.17
2020Q1–2024Q4 2.31% 13.64% 0.17 0.38
2024Q1–2024Q4 3.61% 16.06% 0.22 0.22

Forecast Sharpe ratio, annualized

Window Mean 95% interval P(neg)
2026Q4 0.30 0.06 – 0.54 0.01
2026Q4–2027Q3 0.29 0.05 – 0.53 0.01
2026Q4–2031Q3 0.27 0.03 – 0.52 0.01
Category
Investment alt
Form
Continuous
Data
Accounting
Sorted on
Low minus high
Names per leg
373 long / 412 short median · 41 at the 10th pctile
Original sample
1962–2001