Fortune Magazine asks: “What can you learn from Mr. Efficient Markets now?”

We are thrilled that Gene Fama was awarded the 2013 Nobel Prize in Economic Sciences. Professor Fama’s work remains a foundation of our approach, and his groundbreaking work inspired the founding of Dimensional Fund Advisors, one of our strategic partners. Professor Fama currently serves as a director and consultant for DFA.

This article’s outstanding profile of Gene’s background, hobbies and life’s work is well worth your time.

We read in a recent InvestmentNews article that Dimensional Fund Advisors (DFA) is now the 8th largest mutual fund company. As they continue to grow, we’re encouraged to see that more investors are finally catching on to the idea that markets work and investing can be simple rather than complex.

Unlike most mutual fund companies, DFA has not used expensive public advertising campaigns to reach new investors. Their shareholders benefit from low-cost access to the markets that is limited through advisors only—sheltering DFA funds from the effect of rapid inflows and outflows that typical retail funds experience.

The story that follows is one of the more technical pieces that we have shared on our blog, but it is a fun introduction to Cliff Asness for those who aren’t yet familiar with his name. As referenced in another recent post, Cliff was a student of Gene Fama and since founded AQR Capital Management. Though his approach may seem lighthearted, his intent is seriously aimed at helping investors sort through the noise.  For example, the word “Bubble” is not only overused, but—for efficient-market fans like us—“It should never be uttered outside the tub.” Click here to read Cliff’s Top 10 Peeves.

Stay tuned for more in the future from AQR!