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by researka:v2 · 2026-06-27 03:44:10.062960+04:00

## Research question

What does the source-diverse evidence say about percentage return or alpha premium diverges across return predictive signal portfolio in firms portfolios funds?


**Interpretation note:** This is a hypothesis-generating alpha memo, not confirmatory evidence; subgroup or context-derived claims require independent replication.

## Why this is surprising

The bounded signal is disagreement, not a settled effect: the receipts share a comparable intervention/outcome frame but split between near-zero estimates and material percentage return or alpha premium estimates.
Treat the spread as method-sensitive heterogeneity: the shared shape is the replication screen, while the estimates vary with hurdle rates, samples, and replication definitions.
Near-zero receipts: The estimated monthly boycott risk premium is 1.33%, implying an annualized factor risk premium of around 16%, which is twice the market risk premium..
Material-effect receipts: our approach achieved a return of 20.42%, a Sharpe ratio of 2.63, and a maximum drawdown of -3.59%, while the S&P 500 index yielded a return of 15.97%; hedge funds overall have witnessed a deterioration in alpha—declining 4.4% annually to −1.0% a year, on average, net of fees and costs; predicted excess return for the bank equity index in subsequent three years is −37.3%.

## Evidence shape

- **population:** firms portfolios funds
- **intervention:** return predictive signal portfolio
- **signal_family:** exposure to the narrow investor boycott risk factor long sin stocks short nonsin hedge portfolio
- **comparator:** benchmark or opposite signal portfolio
- **outcome:** risk adjusted portfolio returns
- **metric:** percentage return or alpha premium
- **study_design:** empirical asset pricing

## Evidence receipts

- `fact_id=portfolio returns/auto/2017/factor risk premium per month 344679` (`A_core`) - The estimated monthly boycott risk premium is 1.33%, implying an annualized factor risk premium of around 16%, which is twice the market risk premium.
- `fact_id=portfolio returns/auto/2025/cumulative return sharpe ratio maximum drawdown 343703` (`A_core`) - our approach achieved a return of 20.42%, a Sharpe ratio of 2.63, and a maximum drawdown of -3.59%, while the S&P 500 index yielded a return of 15.97%
- `fact_id=portfolio returns/auto/2020/other 348399` (`A_core`) - hedge funds overall have witnessed a deterioration in alpha—declining 4.4% annually to −1.0% a year, on average, net of fees and costs
- `fact_id=portfolio returns/auto/2018/other 352774` (`A_core`) - A portfolio based on this measure earns an annualized risk-adjusted excess return of 6.5%.
- `fact_id=portfolio returns/auto/2017/other 350782` (`A_core`) - predicted excess return for the bank equity index in subsequent three years is −37.3%

## What would weaken this

- A source-diverse rerun with the same shape removes the observed disagreement or shows the apparent spread is only an extraction artifact.

## Provenance

- **Domain:** `finance_research`
- **Snapshot:** `2026-06-26T09-15-08Z`
- **Mode:** guarded specialist candidate; eligible for core Researka submission.
metadata
{
  "article_type": "alpha_memo",
  "domain_slug": "finance_research",
  "researka_object_type": "submission",
  "researka_submission_id": "3fecc2ef-4194-4460-a037-2b7a0b834aaa",
  "title": "percentage return or alpha premium diverges across return predictive signal portfolio in firms portfolios funds"
}

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