This week, we speak with Gerard O’Reilly, Chief Investment Officer and Co-CEO of Dimensional Fund Advisors, which has ব্যবস্থা 650 billion in assets under management. O’Reilly is also a director of the firm. Prior to joining Dimensional in 2004, O’Reilly earned a PhD. In Aeronautics from the California Institute of Technology.
We discuss “Jean, Ken and Bob”- Eugene Fama, Ken French, Robert Merton – brilliant academics who do a lot of research at DFA. O’Reilly’s ability to work closely with them is behind their rapid growth in Dimensional Fund to work their abstract theories to create improved portfolio performance. He began his career in the DFA’s research department, where he was awarded a Ph.D. Applies to the study of money in aeronautics. Eventually, he became CIO, and shortly thereafter he became C0-CEO.
O’Reilly explains why the Fama-French factor models have been so successful and why the market cap size, quality and price have survived for so long. The ability to search deeply into the underlying data as well as academic research has been a huge advantage for him. We discuss why backtesting always looks so great – no bad backtest sharing, so the survival bias works partially.
His personal motto is “Do the right thing, do the right thing, do it now“
Here is a list of his favorite books; A transcript of our conversation is available here Monday.
You can stream and download our entire conversation, including podcast extras on iTunes, Spotify, Stitcher, Google, Bloomberg and Acast. All our previous podcasts on your favorite pod host can be found here.
Be sure to check out our Masters in Business next week with Adam Parker, founder of Tribute Research. He is from Sanford C. Bernstein began his career as a semiconductor analyst, where he became the # 1 semi-analyst ranked by institutional investors and eventually became head of research. At Morgan Stanley, he was chief U.S. equity strategist and director of Global Quantum Research, where he was named to the All-America Group of Institutional Investors. He was a member of MS’s Global Investment Committee, overseeing $ 2 trillion in personal assets.