investor’s notebook
STEPHEN CRANSTON: The smart dimension
Fama and French helped develop a more scientific approach to asset management
Whether you are reading this in Malawi, Kenya or Senegal, you all have the same go-to guy for one of the most interesting international fund managers around. Costa Economou from Colourfield, when he isn’t spending his time redesigning the Colourfield Salad (a key feature of the menu at JB’s Corner in Melrose Arch), is the Africa rep for Dimensional Fund Advisors from the US. It has US$500bn under management. And this multitasker even finds time for his day job of offering liability-driven investing to pension funds. Economou tells me one of the best features of Dimensional is "Farmer & French". I took this to be one of those overstuffed American sandwiches. In fact he meant Eugene Fama and Kenneth French, who built a more scientific approach to asset management. They are Dimensional’s lead academic consultants. The firm should present proof that their theory works in practice. Robert Merton is an academic consultant and Myron Scholes an independent director. I can still remember the...
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