We examine whether investors can improve their investment opportunity sets by adding an IPO portfolio to a set of benchmark portfolios sorted by firm size and book-to-market ratio. Using U.S. IPOs from 1980-2002, we find that adding a value-weighted IPO portfolio does lead to a statistically and...

In this paper, we study the relative performance of value versus growth strategies from the perspective of stochastic dominance. Using half a century US data on value and growth stocks, we find no evidence against the widely documented fact that value stocks stochastically dominate growth stocks...