Quant Pioneer Dimensional Buys Bonds That Ray Dalio Hates

  • Firm with $650 billion overall has extended duration of debt
  • Manager’s views are guided by work of Nobel winner Eugene Fama
Lock
This article is for subscribers only.

A quant pioneer with $112 billion in fixed income assets is defying doom-mongers like Ray Dalio as it places a bullish wager on interest-rate risk.

Spurred by groundbreaking insights on systematic investing from its Nobel Prize-winning adviser Eugene Fama, Dimensional Fund Advisors has been extending duration in its core bond portfolios this year.