Dimensional Fund Advisors has named Dave Butler co-CEO of
the Austin, Texas-based firm, replacing founder David Booth,
who will continue his role as executive chairman.
Butler will lead the firm alongside Eduardo Repetto, who has
served as co-CEO of Dimensional since 2010, according to a
statement Wednesday from the firm. Butler said in the statement
that Dimensional has increased assets to $460 billion from less
than $10 billion in 1995, when he joined the firm.
Booth, who is a pioneer of smart beta, founded Dimensional
with Rex Sinquefield in 1981 to create real-world investments
based on academic theories that had been flowing from his alma
mater, the University of Chicagos graduate school of
business. The school now bears his name after Booths $300
million donation in 2008.
Dimensionals future and whether it can continue its
success as the original team retires is an important question.
What works in Dimensionals favor is its transparent
investment process that doesnt rely on individual
managers. Dimensionals oldest fund, the US Micro Cap
Portfolio, has outperformed its benchmark with annualized net
returns of 12.07 percent since its inception in 1981. Booth has
also reinforced the firms culture by requiring financial
advisers to attend a boot camp to learn about
Dimensionals philosophy straight from the original team
before they would be allowed to sell the funds. I
recognize the importance of our history, culture, and role as
stewards of investor assets, Butler said in
Wednesdays statement. He will also continue in his role
as head of global financial advisor services.