Anybody know anything about Dimensional Fund Advisors?

[swinerton]

Got onsite interview from this firm in its Santa Monica office (California) for investment associate position.
This firm says they apply most advanced academic research results from some big name professors. They assume market works and try to follow the market instead of spending much time on selecting undervalued stocks.
If so, what do they do everyday? just watch bloomberg? )

 

[Danteshek]

This has been discussed before on this forum. Use the search function.

 

[swinerton]

sorry, could you tell me the key word to search?

 

[NOVADCA]

“They assume market works and try to follow the market instead of spending much time on selecting undervalued stocks.”
they assume the market is efficient, but they also think there is a style (value) premium and size (small cap) premium over the long term. Essentially they overweight smaller cap securities in their core portfolios and go deeper value in the value portfolios. They also have a few trading strategies in which determines when to enter and exit positions depending on market movements. They don’t do typical fundamental analysis, but in speaking with them, they don’t just sit around like a passive management shop can/does.

 

[naturallight]

yeah, it’s a blend of passive and active like NOVADCA says. I think they’ve had pretty good results.
make sure you understand what the job really entails. I think a decent chunk of their biz is relationship mgmt with financial advisors. They only make their funds available to financial advisors who share their same philosophy, which requires some edu and feedback.

 

[swinerton]

Thanks guys, this is really helpful.

 

[mwvt9]

http://www.dfaus.com/dimensional/about/
At the bottom of each page click on the next link in the “Tour”. This will give you some background information on the firm.

 

[NOVADCA]

“They only make their funds available to financial advisors who share their same philosophy”
maybe on the retail side, but they offer their institutional products to anyone who is interested in their products, assuming the mandate is open.

 

[phBOOM]

I believe Eugene Fama sits on their board. Excellent and consistent track record.

 

[mwvt9]

NOVADCA Wrote:
——————————————————-
> “They only make their funds available to financial
> advisors who share their same philosophy”
>
> maybe on the retail side, but they offer their
> institutional products to anyone who is interested
> in their products, assuming the mandate is open.
NOVA is right. They are open on the institutional side, but are avaliable to individuals only through pre-approved financial advisors who share their philosophy.

 

[mwvt9]

phBOOM Wrote:
——————————————————-
> I believe Eugene Fama sits on their board.
> Excellent and consistent track record.
In addition to Fama they also have Ken French and Rex Sinquefield. They also had Milton Friedman before his death.