FirmAge · Info proxy · Barry and Brown (1984)

Firm age based on CRSP

Long minus short decile portfolio, value-weighted, market-adjusted. Quarterly, 1927Q2 to 2024Q4.

Expected return · posterior mean, % per year, averaged over the window
Next quarter
2026Q4
−1.96%
95% interval −4.18% to 0.26%
Next year
2026Q4–2027Q3
−1.96%
95% interval −4.18% to 0.24%
Next five years
2026Q4–2031Q3
−1.96%
95% interval −4.21% to 0.24%

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

−92% since 1927Q2 · log scale

Past performance, annualized

Window Mean Vol. Sharpe t
1927Q2–2024Q4 −1.99% 10.57% −0.19 −1.86
2020Q1–2024Q4 −5.90% 22.09% −0.27 −0.60
2024Q1–2024Q4 12.98% 9.52% 1.36 1.36

Forecast Sharpe ratio, annualized

Window Mean 95% interval P(neg)
2026Q4 −0.19 −0.40 – 0.02 0.96
2026Q4–2027Q3 −0.18 −0.39 – 0.02 0.96
2026Q4–2031Q3 −0.18 −0.37 – 0.02 0.96
Category
Info proxy
Form
Continuous
Data
Other
Sorted on
Low minus high
Names per leg
139 long / 181 short median · 78 at the 10th pctile
Original sample
1931–1980