Capital Advisors has benefited from more than 20 years of working with Dimensional, which has allowed it to offer its institutional clients a consulting model based on a rigorous scientific approach.
Dimensional was founded in the United States in 1981 and currently manages assets of over US$ 600 billion. Its strategies are built on a solid scientific basis and allow access to practically all the assets that are publicly traded globally.
Our clients have access to the best and most updated investment practices available all around the world.
Dimensional is not offered through open platforms. Their clients are only institutional or investment advisers certified by the company.
This ensures that the strategies will be administered efficiently and in accordance with the parameters established by the academics who designed them.
The first step: diversification and Portfolio Theory
Harry Markowitz discovers that diversification reduces risks and that it is possible to build optimal portfolios that maximize returns for a given standard deviation.
Single-sector model: Capital Asset Pricing Model
William Sharpe determined through the CAPM model that the expected return of a stock is proportional to its market beta.
It should be difficult to beat the market: efficient markets hypothesis
The efficient markets hypothesis developed by Eugene Fama changes the course of modern finance. This states that the price of an asset reflects all the information available. There should be no profit if you bet against the market.
Asset managers don't beat the market
Michael Jensen found that active managers do not beat the market, stating that if it is not possible to beat the market, then it pays to be passive.
If you can't beat the market, you better join it
The first passive fund indexed to the S&P 500 was developed.
Better understanding what risk is: Options Pricing Model
The development of the option pricing model allowed new ways of segmenting, quantifying and managing risk. The model also aided in the development of the alternative asset market.
The Big Boys: The Small Cap Effect
Dimensional pioneered small cap strategies with the launch of the first investment strategy in small companies, with high diversification and efficiency.
Multifactorial model: the value effect
Eugene Fama and Kenneth French developed the three-factor model, which identifies the market, size, and relative price (value) as the main determinants of stock performance.
Improving the model: the profitability effect
Robert Novy-Marx manages to identify Profitability as a new dimension of return, which can be implemented in the stock market.
Dimensional's research and investment team is constantly working from an academic perspective, but what really sets them apart is the way they interpret, test, and implement these academic discoveries in each of their strategies.
The market has rewarded long-term investors
Performance of US $ 1 invested