Chicago 2015

Investors from the moon: Fama

A highlight of the Fiduciary Investors Symposium at Chicago Booth School of Business was an intimate Q&A session with the “Father of Modern Finance” and Nobel Laureate, Eugene F. Fama.

Fama, who is the Robert R. McCormick Distinguished Service Professor of Finance at the Chicago Booth School of Business, believes that because markets are efficient, investors should not pay to try and beat the market. He’s surprised that the industry has not adopted passive management more than it has, despite 50 years of data evidence.

He talks candidly alongside editor Amanda White and John Skjervem, chief investment officer of Oregon State Treasury, about active management, academic progress, the three-factor model, and efficient markets.

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