The Experts

The System has been revealed in studies and recommendations from some of the world's most prominent finance professors, authors and investors. See more expert quotes here.

Eugene Fama, Professor of Finance, University of Chicago

Professor Fama is most often thought of as the father of efficient market hypothesis. Widely perceived as the "father of modern finance," he has brought an empirical and scientific rigor to the field of investment management, transforming the way finance is viewed and conducted. In a ground-breaking article in the May, 1970 issue of the Journal of Finance, entitled "Efficient Capital Markets: A Review of Theory and Empirical Work," Fama proposed two crucial concepts that have defined the conversation on efficient markets ever since.

How Fama's advice relates to The System Fama's concepts underlie the The System: if markets are efficient then why pay a money manager fees in order to "beat" them? Professor Fama's work inspired the founding of Dimensional Fund Advisors which today has $126 billion under management (as of 2006). The process and theory behind Dimensional Fund Advisors essentially defines the underpinnings of The System. Professor Fama serves on the board of directors. He helped develop the firm's process, continues to supply key research, and helps keep the firm abreast of research in academia. Dimensional Fund Advisors' investment strategies use their proprietary low cost index funds to build diversified portfolios and are only offered by approved financial advisors.