Post-Earnings Announcement Drift
Long positive-surprise names and short negative-surprise names for weeks after the print — PEAD, the original earnings-momentum.
Definition
Post-Earnings Announcement Drift refers to surprise names and short negative-surprise names for weeks after the print — PEAD, the original earnings-momentum. Keep that definition fixed when comparing series, managers, or regimes — renaming the same tape does not create a new signal.
Why it matters
It is a named object desks use to frame risk, positioning, or process. When surprise names and short negative-surprise names for weeks after the print — PEAD, the original earnings-momentum shifts, related hedges, limits, and narratives usually need an explicit update rather than a quiet assumption.
Case
Suppose a desk is positioned for the opposite of what post-earnings announcement drift is saying. If surprise names and short negative-surprise names for weeks after the print — PEAD, the original earnings-momentum moves against that book, the first question is not “is the story clever?” but whether size, hedges, and stop logic still match the observation.
How to read it
Keep the definition fixed, then challenge it with cross-checks before sizing. Prefer a short written null hypothesis for Post-Earnings Announcement Drift: what would falsify the current reading in the next window?