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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. A mutual fund is a form of collective investment that pools money from many investors and invests their money in stocks, bonds, short-term money market instruments, and/or other securities. ...
Rex Sinquefield is the co-founder and co-chairman of Dimensional Fund Advisors. ...
The University of Chicago is a private university located principally in the Hyde Park neighborhood of Chicago. ...
Eugene F. Fama. ...
Kenneth R. French (born March 10, 1954) is the Carl E. and Catherine M. Heidt Professor of Finance at the Tuck School of Business, Dartmouth College. ...
Dartmouth College is a private academic institution in Hanover, New Hampshire, in the United States. ...
In poopy pants, the efficient market hypothesis (EMH) asserts that financial markets are efficient, or that prices on traded assets, e. ...
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 28 outside investors, including Gov. Arnold Schwarzenegger. 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. Location of Santa Monica in California and Los Angeles County Coordinates: Country United States State California County Los Angeles Incorporated November 30, 1886 Mayor Robert Holbrook City Council Bobby Shriver Ken Genser Kevin McKeown Herb Katz Pam OConnor Richard Bloom Area - City 41. ...
Arnold Alois Schwarzenegger (German pronunciation (IPA): ) (born on July 30, 1947, in Graz, Austria) is an Austrian-American bodybuilder, actor and an American politician, currently serving as the 38th Governor of California. ...
Myron S. Scholes (born July 1, 1941) is one of the authors of the famous Black-Scholes equation. ...
Robert C. Merton (born July 31, 1944), a leading scholar in the field of finance, was one of three men who, in the early 1970s, developed the mathematics of the stock options markets. ...
Merton Howard Miller (May 16, 1923 - June 3, 2000) won the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel in 1990, along with Harry Markowitz and William Sharpe. ...
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. An institutional investor is an investor who is an institution like a bank, insurance fund, retirement fund, or mutual fund manager. ...
An investment adviser is an individual or firm that advises their client on investment matters on a professional basis. ...
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.
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