Articles (8)

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  • Mark Hebner and IFA Contributors

    The Never-Ending Pursuit of Manager Alpha – Updated

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    by Mark Hebner and Murray Coleman — Updated: Tuesday, August 20, 2019

    As we have pointed out on many occasions, both stock picking and hiring an active manager to pick stocks on your behalf are mug’s games. While some investors diligently study individual stocks and other investors handsomely pay active managers to deliver alpha (an ...Read More

  • Brad Steiman

    Paradox of Skill

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    by Brad Steiman — Updated: Tuesday, July 9, 2019

    Manager selection is a process that requires analyzing noisy performance data, so it should lean heavily on the notion of statistical ...Read More

  • Mark Hebner

    Calculations for t-Statistics

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    by Mark Hebner — Updated: Wednesday, May 22, 2019

    In calculating the t-stat, the first step is to determine the excess returns the manager earned above an appropriate ...Read More

  • Dimensional Fund Advisors

    Recent Market Volatility

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    by Dimensional Fund Advisors — Updated: Monday, December 24, 2018

    What should you make of recent ups and downs in the stock market? Here's helpful context on volatility and expected ...Read More

  • Brad Steiman

    What's the Significance?

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    by Brad Steiman — Updated: Thursday, May 3, 2018

    Caution: Technical Discussion to Follow—READ AT YOUR OWN RISK. As the old saying goes, there are three kinds of lies: lies, damned lies, and statistics. It is true data can be tortured with statistical tools that will make it confess to almost anything. On the other hand, ...Read More

  • Jim Parker, Dimensional Fund Advisors

    Catchphrase Investing

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    by Jim Parker, Dimensional Fund Advisors — Tuesday, December 26, 2017

    The financial media is drawn to catchphrases, acronyms, and buzzwords that can be sold as the new thing. FAANG (Facebook, Apple, Amazon, Netflix, and Google) is the latest of these. But does this constitute an investment strategy? For journalists, commentators, and marketers, ...Read More

  • Dimensional Fund Advisors

    To Bit or Not to Bit: What Should Investors Make of Bitcoin Mania?

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    by Dimensional Fund Advisors — Friday, December 15, 2017

    Bitcoin and other cryptocurrencies are receiving intense media coverage, prompting many investors to wonder whether these new types of electronic money deserve a place in their portfolios. Cryptocurrencies such as bitcoin emerged only in the past decade. Unlike traditional ...Read More