Dimensional Fund Advisors: Difference between revisions
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'''Dimensional Fund Advisors''' (DFA or Dimensional) is an investment firm headquartered in [[Austin, Texas]] with regional offices in |
'''Dimensional Fund Advisors''' (DFA or Dimensional) is an investment firm headquartered in [[Austin, Texas]] with regional offices in Amsterdam, Berlin, London, Santa Monica, Sydney, and Vancouver. The company was founded in 1981 by [[David G. Booth]] and [[Rex Sinquefield]], both graduates of the [[University of Chicago Booth School of Business]]. |
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DFA's objective is to "deliver the performance of capital markets and increase returns through state-of-the-art portfolio design and trading."<ref>DFA's home page: http://www.dfaus.com</ref> The company's board of directors includes [[Myron Scholes]] and [[Robert C. Merton]], both of whom won the [[Nobel Memorial Prize in Economic Sciences|Nobel Prize for economics]]. The late [[Merton Miller]], another Nobel laureate, was also on the board of directors. Other directors include leading economists such as [[George Constantinides]], [[Eugene Fama]], [[Kenneth French]], and [[Roger G. Ibbotson]]. DFA hosts a forum where [[Eugene Fama]] and [[Kenneth French]] express their opinions on topics related to finance and current events.<ref>http://www.dimensional.com/famafrench/</ref> This website is called the [[Fama/French Forum]]. |
DFA's objective is to "deliver the performance of capital markets and increase returns through state-of-the-art portfolio design and trading."<ref>DFA's home page: http://www.dfaus.com</ref> The company's board of directors includes [[Myron Scholes]] and [[Robert C. Merton]], both of whom won the [[Nobel Memorial Prize in Economic Sciences|Nobel Prize for economics]]. The late [[Merton Miller]], another Nobel laureate, was also on the board of directors. Other directors include leading economists such as [[George Constantinides]], [[Eugene Fama]], [[Kenneth French]], and [[Roger G. Ibbotson]]. DFA hosts a forum where [[Eugene Fama]] and [[Kenneth French]] express their opinions on topics related to finance and current events.<ref>http://www.dimensional.com/famafrench/</ref> This website is called the [[Fama/French Forum]]. |
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Revision as of 02:55, 9 November 2010
| Dimensional Fund Advisors | |
| Company type | Private |
|---|---|
| Industry | Finance |
| Founded | 1981 |
| Headquarters | Austin, TX |
Key people | David G. Booth, Co-CEO Eduardo Repetto, Co-CEO |
| Products | Money Manager and Investment Firm |
Number of employees | Approx. 500 |
| Website | www.dimensional.com |
Dimensional Fund Advisors (DFA or Dimensional) is an investment firm headquartered in Austin, Texas with regional offices in Amsterdam, Berlin, London, Santa Monica, Sydney, and Vancouver. The company was founded in 1981 by David G. Booth and Rex Sinquefield, both graduates of the University of Chicago Booth School of Business.
DFA's objective is to "deliver the performance of capital markets and increase returns through state-of-the-art portfolio design and trading."[1] The company's board of directors includes Myron Scholes and Robert C. Merton, both of whom won the Nobel Prize for economics. The late Merton Miller, another Nobel laureate, was also on the board of directors. Other directors include leading economists such as George Constantinides, Eugene Fama, Kenneth French, and Roger G. Ibbotson. DFA hosts a forum where Eugene Fama and Kenneth French express their opinions on topics related to finance and current events.[2] This website is called the Fama/French Forum.
The company rejects stock-picking and market timing and utilizes enhanced indexing to design portfolios and limit trading costs.[3] Their investment philosophy emphasizes five "dimensions" that determine investment results—hence the firm's name. For example, one of their stock funds might overweight small-cap stocks and value stocks, to emphasize the dimensions of "size" and "price."
Dimensional has more than $190 billion under management as of September 2010[update]. Its mutual funds are not offered directly to the public, but only to institutional investors and through approved fee-only Registered Investment Advisors. 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.[4] [5]
On November 6, 2008, the University of Chicago Graduate School of Business announced a $300 million dollar gift from David Booth in the form of cash and the income stream from DFA stock. The school has been renamed as the University of Chicago Booth School of Business.[6][7]
On December 2, 2009, Dimensional announced the acquisition of SmartNest, a retirement planning computer software company. The technology offered by SmartNest was developed by Harvard Business School professor and DFA board member Robert C. Merton.[8]
See also
Notes
- ^ DFA's home page: http://www.dfaus.com
- ^ http://www.dimensional.com/famafrench/
- ^ "The New Indexing," an article by Eugene Fama, Jr. on DFA's site: http://www.dfaus.com/2009/05/the-new-indexing.html
- ^ 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.
- ^ "The Evolution of an Investor", by Michael Lewis. "Portfolio Magazine", December 2007.
- ^ Associated Press, Alum gives U of Chicago $300M for business school
- ^ The University of Chicago Booth School of Business
- ^ http://www.pionline.com/article/20091202/DAILYREG/912029990