Reuters notes that Fama is best known for research he did with French showing that certain groups of stocks tend to out-perform others over time. The research suggests that three factors are essential to a diversified stock portfolio—company size, style, and market risk, known as the Fama-French “Three-Factor Model”—according to the newspaper.
Reuters notes that although many investors favor active managers, research conducted by French and Fama in 2009 found “no statistical evidence that active mutual fund managers as a whole can enhance returns.”
Read the full story, published 6/6/13 by Financial Post via Reuters.
