IntMom · Momentum · Novy-Marx (2012)

Intermediate Momentum

Long minus short decile portfolio, value-weighted, market-adjusted. Quarterly, 1927Q1 to 2024Q4.

Expected return · posterior mean, % per year, averaged over the window
Next quarter
2026Q4
17.58%
95% interval 12.49% to 23.34%
Next year
2026Q4–2027Q3
17.49%
95% interval 12.38% to 23.21%
Next five years
2026Q4–2031Q3
17.10%
95% interval 11.85% to 22.76%

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

+158,592,544% since 1927Q1 · log scale

Past performance, annualized

Window Mean Vol. Sharpe t
1927Q1–2024Q4 17.94% 24.53% 0.73 7.24
2020Q1–2024Q4 19.28% 38.91% 0.50 1.11
2024Q1–2024Q4 86.65% 42.05% 2.06 2.06

Forecast Sharpe ratio, annualized

Window Mean 95% interval P(neg)
2026Q4 0.72 0.51 – 0.96 0.00
2026Q4–2027Q3 0.69 0.49 – 0.91 0.00
2026Q4–2031Q3 0.62 0.41 – 0.85 <0.01
Category
Momentum
Form
Continuous
Data
Price
Sorted on
High minus low
Names per leg
386 long / 385 short median · 69 at the 10th pctile
Original sample
1927–2010