Individual Investors Can Beat the Market

Quantitative strategies, as implemented by money managers such as Dimensional Fund Advisors (DFA), LSV Asset Management, AQR, and Vericimetry (where I am a shareholder in their small cap value fund, VYSVX), invest in stocks with characteristics that have produced high returns in the past. The assumption is that these characteristics, such as low market-to-book ratios, will be associated with higher average returns in the future, too.