Changing the Classic-Coke Recipe?

Dimensional Fund Advisors, DFA, is changing a few lines of code within is volumes of algorithms.   Personal financial advisors account for $164 billion of the $300 billion of its separately managed accounts.   Why the change?  Because twenty years ago there was twenty years less data.   For more detail as to whether or not this is a watershed event for a company that is religious about passive investing, read Brooke Southall’s article from RIABiz:


Changing the Classic Coke Recipe?

Eduardo Repetto posed with Alex Potts and Chip Roame before telling advisors about a born-of-data, new ingredient in DFA funds.

Dimensional Fund Advisors is a company that continues to experience stunning success — but not because it does anything exciting per se. DFA is a boring company, basically selling index funds with a layer of intelligence baked in. But it sells a tremendous amount of those funds and its steady nature is part of its charm and why it is so trusted. That dare-to-be-dull bearing of the Austin, Texas-based company with about $300 billion of managed assets helps explain why the company sent no less than its co-CEO to California to explain that, in effect, a couple lines of code are being changed in a tome of algorithms. Eduardo Repetto employed a combination of humor, numbers and deft use of an Argentinian accent to get his point across that ‘profitability’ as a DFA additive to portfolios is a good thing and a ‘big deal’.

Continue reading Brooke Southall’s article at RIABiz