Quant Giant of Texas Confronts an Industry Crisis of Confidence
- Dimensional sticks to value despite 20-year low versus growth
- $609 billion firm also questions popular fixed-income factors
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The quants at $609 billion Dimensional Fund Advisors are here to set the record straight: Value investing isn’t broken.
Sure, the strategy of buying apparently cheap stocks just tumbled to a fresh two-decade low versus one of chasing growth shares. Rivals are exploring fixes for the brand of systematic trading that dissects stocks by factors like how depressed their valuations look and how fast they’ve risen.