October 22, 2013
Dimensional Funds Board Member awarded Nobel Prize in Economics
We're pleased to let you know that Eugene Fama, current Board Member of Dimensional Funds ("DFA") and one of the founders of modern financial theory whose research forms the underpinnings of DFA's investment philosophy, has been awarded the Nobel Prize in Economics.
Professor Fama's groundbreaking work on asset pricing and markets inspired the founding of Dimensional and his ongoing contributions continue to guide DFA's investment approach. Professor Fama taught David Booth, the founder and CEO of Dimensional, at the University of Chicago, and he continues to advise DFA as a Board Member.
As the Nobel Prize committee's press release states - "Beginning in the 1960s, Eugene Fama and several collaborators demonstrated that stock prices are extremely difficult to predict in the short run, and that new information is very quickly incorporated into prices. These findings not only had a profound impact on subsequent research but also changed market practice. The emergence of so-called index funds in stock markets all over the world is a prominent example."
We're excited that the Nobel Prize committee has recognized Professor Fama's work and we hope the publicity from this award helps to further educate investors about their investment portfolios. This continues to affirm to us (and we hope to you, too) that our investment approach is based on Nobel Prize-winning academic research and evidence.
Dimensional Funds has 2 short videos (one is 3 minutes long and the other is 1 minute long) on their website featuring Professor Fama and his research, if you'd like to learn more about this:
http://www.dfaus.com/2013/10/eugene-fama-awarded-nobel-prize-in-economics.html
Thank you again for having us be your advisor!
