The work of economist Eugene Fama, which earned the Nobel Prize yesterday, shows that active managers are "fated to lose," according to Bloomberg.

Fama's work on asset valuation and markets served as the intellectual foundation for DFA [profile], as well as for index funds.

Because the markets are efficient and price movements really can't be predicted, Fama argues that it is impossible for active managers to gain an advantage. 

Edited by: Tommy Fernandez


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