DFA Funds
About DFA
Working years ahead of the industry, Dimensional forged a new way to invest. The firm inaugurated its strategies in 1981 with early research into the stronger performance of small cap stocks. Later, a comprehensive analysis of stock prices worldwide deepened the strategy repertoire and set a new standard for portfolio design. This evolution reflects an abiding belief in financial science and the efficacy of capital markets.
At Dimensional, they see markets as an ally, not an adversary. Rather than trying to take advantage of the ways markets are mistaken, they take advantage of the ways markets are right-the ways they compensate investors. The firm designs portfolios to help their investors capture what the market offers in all its dimensions.
Dimensional is owned primarily by employees and directors, and manages assets exclusively for institutional investors and the clients of registered financial advisors. From offices in Santa Monica, London, and Sydney, their professional staff supervises portfolios twenty-four hours a day.
Currently, the company has over $123 Billion under management.
Dimensional is always researching tomorrow's solutions today. They do this through deep working relationships with leading financial economists. By acting as a conduit between scientists and practicing investors, Dimensional has pioneered many strategies and consulting technologies now taken for granted in the industry.
Dimensional's process explores every aspect of dynamic real-world markets, including portfolio architecture, trading methodology, and tax management. Their investment staff is involved in research efforts through its daily trading activities, resulting market studies, and Investment Committee participation. Clients benefit when research and experience combine to solve new investment challenges. As often as a research innovation generates a new technology, a client need or investment problem drives a new solution.
The following articles further explain Dimensional's methodologies:
The Error Term by Eugene F. Fama Jr.
Explaining Stock Returns - A Literature Survey by James L. Davis
Is There Still Value in the Book-To-Market Ratio? by James L. Davis
Presidential Elections and Market Returns by David G. Booth
Random Drift and Asset Allocation by Davide G. Booth
The Informational Efficiency of Stock Prices: A Review by James L. Davis
Update of the Research Underlying Dimensional's Bond Strategies by Eugene F. Fama
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