Dimensional Fund Advisors
Information about Dimensional Fund Advisors
Dimensional Fund Advisors is an investment firm that develops mutual funds grounded in academic research. The company was founded in 1981 by David Booth and Rex Sinquefield, both M.B.A. graduates of the University of Chicago, where fundamental research informing the firm was first developed by Professor Eugene Fama and Professor Kenneth French of Dartmouth College. See also: Efficient market hypothesis.
The company is headquartered in Santa Monica, California, with regional offices in Sydney, London, Vancouver, Austin, and Chicago. The company is owned by its employees, board members and a number of outside investors, which as of 2005 was reported to include Governor Arnold Schwarzenegger of California.[1] Dimensional boasts Nobel laureates Myron Scholes and Robert C. Merton as two of the seven board members. The late Merton Miller has also served as a director.
Dimensional manages over 100 billion dollars of funds as of 2006. The funds are not offered to the public directly, but only to institutional investors and registered investment advisers.
Dimensional Fund Advisors strives to deliver the performance of capital markets and add value through portfolio design and trading. The firm departs from the rules and rigidity of traditional index funds and avoids the cost-generating activity of stock picking and market timing. Instead DFA focuses on the dimensions of capital markets that reward investors and they deliver them as intelligently and effectively as possible. Financial science has documented that, over the long term, small cap stocks outperform large cap stocks and value stocks outperform growth stocks. These returns seem to be compensation for risk. In fixed income, risk is well described by bond maturity and credit quality. Dimensional's investment strategies deliberately target specific risk factors. They are highly diversified and painstakingly designed to work together in a total index portfolio.
The company is headquartered in Santa Monica, California, with regional offices in Sydney, London, Vancouver, Austin, and Chicago. The company is owned by its employees, board members and a number of outside investors, which as of 2005 was reported to include Governor Arnold Schwarzenegger of California.[1] Dimensional boasts Nobel laureates Myron Scholes and Robert C. Merton as two of the seven board members. The late Merton Miller has also served as a director.
Dimensional manages over 100 billion dollars of funds as of 2006. The funds are not offered to the public directly, but only to institutional investors and registered investment advisers.
Dimensional Fund Advisors strives to deliver the performance of capital markets and add value through portfolio design and trading. The firm departs from the rules and rigidity of traditional index funds and avoids the cost-generating activity of stock picking and market timing. Instead DFA focuses on the dimensions of capital markets that reward investors and they deliver them as intelligently and effectively as possible. Financial science has documented that, over the long term, small cap stocks outperform large cap stocks and value stocks outperform growth stocks. These returns seem to be compensation for risk. In fixed income, risk is well described by bond maturity and credit quality. Dimensional's investment strategies deliberately target specific risk factors. They are highly diversified and painstakingly designed to work together in a total index portfolio.
See also
Super-diversificationNotes
1. ^ The truth about Arnold, by Peter Byrne. salon.com, February 15 2005; see also Schwarzenegger’s Next Goal on Dogged, Ambitious Path, by Bernard Weinraub and Charlie LeDuff. New York Times, August 17, 2003.
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mutual fund is a professionally-managed form of collective investments that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities.
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Rex Sinquefield was the co-founder of Dimensional Fund Advisors and was its co-chairman until his retirement in 2005. In the 1970s, he did influential research on historical stock market returns and pioneered many of the nation's first index funds.
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The University of Chicago is a private university located principally in the Hyde Park neighborhood of Chicago. Founded in 1890 by the American Baptist Education Society and the oil magnate John D. Rockefeller, the University of Chicago held its first classes on October 1, 1892.
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Eugene Fama
Born January 14 1939
Boston, Massachusetts
Residence U.S.
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Born January 14 1939
Boston, Massachusetts
Residence U.S.
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Kenneth Ronald "Ken" French (born March 10, 1954) is the Carl E. and Catherine M. Heidt Professor of Finance at the Tuck School of Business, Dartmouth College. He has previously been a faculty member at MIT, the Yale School of Management, and the University of Chicago Graduate
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Dartmouth College is a private, coeducational university located in Hanover, New Hampshire, USA. Incorporated as "Trustees of Dartmouth College,"[6][7]
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In finance, the efficient market hypothesis (EMH) asserts that financial markets are "informationally efficient", or that prices on traded assets, e.g., stocks, bonds, or property, already reflect all known information and therefore are unbiased in the sense that they reflect the
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Santa Monica, California
Downtown Santa Monica as seen from the Santa Monica Pier
Nickname: SaMo, The Peoples Republic of Santa Monica
Location of Santa Monica in Los Angeles County, California
Coordinates:
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Downtown Santa Monica as seen from the Santa Monica Pier
Nickname: SaMo, The Peoples Republic of Santa Monica
Location of Santa Monica in Los Angeles County, California
Coordinates:
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Arnold Alois Schwarzenegger (German pronunciation (IPA): [ˈaɐ̯nɔlt ˈaloɪ̯s ˈʃvaɐ̯ʦənˌʔɛɡɐ]
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Myron Samuel Scholes (born July 1, 1941 in Timmins, Ontario, Canada) is one of the authors of the famous Black-Scholes equation.
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Nobel Prize Winner
In 1997 he was awarded the Nobel Memorial Prize in Economics for "a new method to determine the value of derivatives"...... Click the link for more information.
Robert C. Merton
Robert C. Merton, 2006
Born July 31 1944
New York
Residence U.
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Robert C. Merton, 2006
Born July 31 1944
New York
Residence U.
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Merton Miller
Born May 16 1923
Boston, Massachusetts
Died May 3 2000 (aged 77)
Chicago, Illinois
Residence U.S.
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Born May 16 1923
Boston, Massachusetts
Died May 3 2000 (aged 77)
Chicago, Illinois
Residence U.S.
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An institutional investor is an investor, such as a bank, insurance company, retirement fund, hedge fund, or mutual fund, that is financially sophisticated and makes large investments, often held in very large portfolios of investments.
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An investment advisor (or investment adviser) is an individual or firm that advises clients on investment matters on a professional basis.
They tend to fall into two distinct categories:
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They tend to fall into two distinct categories:
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In finance, enhanced indexing is a catch-all term that describes strategies employed to outperform traditional indexing. Enhanced indexing attempts to generate modest excess returns compared to index funds and other passive management techniques.
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