Dimensional Success Introduction Dimensional Fund Advisors LP is an investment consulting firm, established in 1981, based in the United States. In this paper I will be presenting the firm by examining what they do and how they perform in a global market. Next, I will analyze how Dimensional takes advantage of the efficient market hypothesis in order to operate profitably. Discussion Dimensional is truly a multinational global firm with twelve offices around the world. Portfolio and trading desks in North America, Europe, and Asia, managing more than ten thousand securities in over forty countries. Actively trading in the major markets throughout the world ensures that Dimensional staff are continually trading, and able to provide responsive service to clients around the clock (Dimensional, 2016). Priding themselves on the fact that they refuse to forecast or follow index fluctuations, Dimensional’s systematic approach is based on a close relationship with many leading financial economists. Representing their company as a link between the latest science and the investors, using leading-edge advances in research and technology to guide them in benefiting their clients. Dimensional provides investor feedback to academics to assist in research, the …show more content…
With diversification, risk can be better managed, by mitigating the potential impact a single company, asset class, or country has on market prices. Identifying the risks with expected compensational returns, choosing how much risk is appropriate and minimizing the potential effects with diversity. With a consistent process driven approach Dimensional traders seek to capture the over all performance of the broad market dimensions then the random fluctuations of single firms and indexes (Dimensional,