KeatsConnelly congratulates Dr. Eugene Fama on receiving the Nobel Prize in Economics for 2013. This award is a validation of his enormous contributions to the field of modern finance which underlie many of the funds we use in client portfolios at KeatsConnelly.
Known as the “father of modern finance,” Dr. Fama and his academic partners have studied stock returns for decades to determine the real drivers for returns. Their findings are now widely accepted among academics but have been vigorously resisted by Wall Street. Why? Because Fama et al. showed that investors can capture most stock market returns passively and at a low cost without having to hire an expensive manager to try to outguess the millions of other investors whose collective bets produce the market price.
Dimensional Fund Advisors (or DFA), the fund company Dr. Fama himself helps oversee, builds its funds around the known return “factors” and keeps fund costs low. DFA does not need to pay for extensive stock research or star managers to deliver the true return of markets. After all, if the research confirms that a “passive” approach routinely does better than an active one over time, why pay the extra fees?
So we are proud to offer DFA funds and again congratulate Eugene Fama on his wonderful accomplishment. To learn more about Dr. Fama or the Dimensional approach, please click the link below.
To learn more about how KeatsConnelly can help you manage your portfolio in the US or Canada, please click on the links below.
KeatsConnelly US – http://www.keatsconnelly.com/how-we-help/investment-management/