The Fama/French research in this area is really like the junior high school science fair project of the finance world. It's entertaining to look at, and kind of cute, but has pretty much zero applicability to the real world.
Also keep in mind that David Booth is chairman and co-CEO of Dimensional Fund Advisors (DFA), where Fama has worked for quite a long time and where French also works, both as consultants and French also as Director of Investment Policy.
DFA is truly just another one of these shit-show asset managers that out of one side of their mouth talks about how all other active managers are ripping you off, but out of the other side of their mouth says that, of course, they know what kind of piddly freshman linear regression model really will consistently generate superior returns.
Fama's Nobel Prize in economics was the same kind of political farce as Obama's Peace Prize.
Also keep in mind that David Booth is chairman and co-CEO of Dimensional Fund Advisors (DFA), where Fama has worked for quite a long time and where French also works, both as consultants and French also as Director of Investment Policy.
DFA is truly just another one of these shit-show asset managers that out of one side of their mouth talks about how all other active managers are ripping you off, but out of the other side of their mouth says that, of course, they know what kind of piddly freshman linear regression model really will consistently generate superior returns.
Fama's Nobel Prize in economics was the same kind of political farce as Obama's Peace Prize.