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An Article about DFA Funds

This is a great article about DFA Funds

DFA Funds Hard to Buy, Easy to Own

By Timothy Middleton


June 2002

 Call Dimensional Fund Advisors the anti-Long Term Capital Management .

 The latter is the professor – run hedge fund that imploded because the risks it was trying to avoid bit it in the backside. DFA,  likewise run by a coven of finance professors, doesn’t avoid risk—it relishes it .

And that’s produced an excellent long- term performance record, which, alas, most individual investors can’t take advantage of. DFA funds are sold only through fee-only financial planners—and then only when DFA agrees to accept their business.

“I can’t stand their attitude! ” grouses a planner whom DFA turned down. “They’ve got great funds, and a great discipline, lots of deep thinking, but they’ve got an attitude.”

 Before Harold Evensky, a well-known planner, was allowed to invest in DFA funds, he had to t rek to seminars it sponsors at places such as the University of Chicago. “I remember way back when they told me you had to be approved that I was incensed,” he says. “But it’s not elitist criteria they’re pushing; it’s professional criteria.”

 Today, DFA funds account for as much as 40% of a typical client’s equity port folio at Evensky, Brown & Katz, headquartered in Coral Gables, Fla. DFA is run on principles developed in the nation’s graduate schools of ….

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