PctTotAcc · Accruals · Hafzalla, Lundholm, Van Winkle (2011)

Percent Total Accruals

Long minus short decile portfolio, value-weighted, market-adjusted. Quarterly, 1988Q3 to 2024Q4.

Expected return · posterior mean, % per year, averaged over the window
Next quarter
2026Q4
2.41%
95% interval −0.54% to 5.40%
Next year
2026Q4–2027Q3
2.41%
95% interval −0.57% to 5.42%
Next five years
2026Q4–2031Q3
2.42%
95% interval −0.73% to 5.53%

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

+154% since 1988Q3 · log scale

Past performance, annualized

Window Mean Vol. Sharpe t
1988Q3–2024Q4 3.07% 10.06% 0.31 1.84
2020Q1–2024Q4 4.83% 8.44% 0.57 1.28
2024Q1–2024Q4 −1.22% 5.56% −0.22 −0.22

Forecast Sharpe ratio, annualized

Window Mean 95% interval P(neg)
2026Q4 0.24 −0.05 – 0.54 0.06
2026Q4–2027Q3 0.24 −0.06 – 0.53 0.06
2026Q4–2031Q3 0.22 −0.06 – 0.53 0.07
Category
Accruals
Form
Continuous
Data
Accounting
Sorted on
Low minus high
Names per leg
481 long / 492.5 short median · 427 at the 10th pctile
Original sample
1989–2008