Pimco and American Funds are not the only mutual fund firms that once had cult-like followings and are now showing slipping performance. You can now add Dimensional Fund Advisors
to that list [see profile
]. Institutional Investor Magazine
reports no DFA's "bump" as its funds have lagged the S&P 500 and dropped an average 10 percent this year.
DFA founder David Booth
is not "fazed" by the fall, II
That may be because unlike American Funds and now Pimco, Austin, Texas-based DFA funds are still seeing inflows. Booth points to institutional wins as one reason for the inflows.
The article also adds some background on how Booth founded the mutual fund firm in 1981, including a "founded in an apartment" creation story (move over Joe Mansueto).
Sean Hanna, Editor in Chief
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