Three weeks ago, The Royal Swedish Academy of Sciences awarded the 2013 Nobel Prize for Economics to three U.S. economists, one being Eugene Fama. Dr. Fama, a professor at the University of Chicago and often referred to as “the father of modern finance,” is credited with demonstrating the notion that markets are efficient.
Professor Fama’s work led to the creation of the first index mutual funds and led two of his prize students, David Booth and Rex Sinquefield to start Dimensional Fund Advisors. It is this Nobel worthy research that drives our investment philosophy and is the primary reason why Dimensional Funds are the tools we use to execute this philosophy in client portfolios.
We congratulate Dr. Fama on this momentous accomplishment and want to share just a little insight from the man himself. Below are two short videos, one featuring Dr. Fama discussing the evolution of finance and the other from David Booth, congratulating Dr. Fama and briefly reflecting on his impact in the industry and at Dimensional.