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Elroy Dimson

Elroy Dimson

Research Director (Finance & Accounting)
Chairman of the Newton Centre for Endowment Asset Management (CEAM)

BA (Newcastle University), MCom (Birmingham University), PhD (University of London), Hon FIA (Institute of Actuaries), Hon FSIP (CFA Institute)

Research interests

Investment management; financial market history; endowment asset management.

Subject group: Finance & Accounting

Professional experience

Elroy Dimson chairs the Newton Centre for Endowment Asset Management at Cambridge Judge Business School, and is Emeritus Professor of Finance at London Business School. He is a Non-Executive Director of FTSE International, is on the Steering Committee of the Financial Economists' Roundtable, and is an Advisory Council member for Financial Analysts Journal. He is a Fellow of the Royal Historical Society, Honorary Fellow of CFA UK and of the Institute of Actuaries. His PhD is from London Business School.

Professor Dimson's books include Triumph of the Optimists, the Global Investment Returns Yearbook 2016, the Global Investment Returns Sourcebook 2016 (all with Paul Marsh and Mike Staunton), Endowment Asset Management (with Shanta Acharya), and Financial Market History (with David Chambers, forthcoming). Publications since 2015 have been on subjects such as active ownership (Review of Financial Studies), real assets (Journal of Financial Economics), financial history (Journal of Financial and Quantitative Analysis), endowment strategy (Financial Analysts Journal), long-horizon investing (five book chapters), as well as case studies on manager selection and on stocks for the long run (both Harvard Business School).

Previous appointments

Elroy Dimson has been an Emeritus Professor at London Business School since 2009. Prior to 2009, he served LBS as Professor of Finance, Faculty Governor, Chair of the Finance Area, Chair of the Accounting Area, Dean of MBA Programmes, and Director of the Initiative on Foundation and Endowment Asset Management. He has held visiting positions at Chicago, Berkeley, the Bank of England, and other institutions, as well as a variety of board positions.

Awards & honours

  • Bernstein Fabozzi/Jacobs Levy Outstanding Article Award for The Norway Model, with David Chambers and Antti Ilmanen, 2013
  • Best Paper Award from AAWE for The Price of Wine, with Christophe Spaenjers, 2013
  • Moskowitz Prize for best paper in 2012-13 for Active Ownership, with Oguzhan Karakas and Xi Li
  • Vertin Award from CFA Institute, 2012
  • Emeritus Fellowship in Financial Market History from Leverhulme Foundation, 2010-2012
  • Forum pour l'Investissement Responsable Award, 2009
  • Fellowship of Cambridge Judge Business School, 2009-2013
  • Inquire Europe Award for research on Responsible Investing, 2008
  • All-Star Paper Award from JFE for Risk Measurement and Thin Trading, 2002, 2008
  • Coller Institute for Private Equity Research Award, 2007
  • Honorary Fellowship (FSIP) of the CFA Society of the UK, 2007
  • SSRN's most downloaded finance paper for The Worldwide Equity Risk Premium, 2007
  • Innovation in Learning Award, 2006
  • GSAM Prize Finalist for The Expected Illiquidity Premium, 2005
  • Inquire Prize for High Frequency Performance Monitoring, 2002
  • Honorary Fellowship of Institute of Actuaries, 2002
  • President of European Finance Association, 2001
  • Most Innovative Paper Medal from Inquire for A Century of Investment Returns, 2001
  • Roger Murray Prize from Q-Group for The Millennium Book, 2000

Selected publications

Here are a selection of Elroy Dimson's publications. Please see the "Selected publications" tab above for a more comprehensive list.

Dimson, E., Marsh, P. and Staunton, M. (2014) Global investment returns yearbook 2014. Zurich: Credit Suisse Research Institute.

Dimson, E. and Spaenjers, C. (2011) "Ex post: the investment performance of collectible stamps." Journal of Financial Economics, 100(2): 443-458 (DOI: 10.1016/j.jfineco.2010.12.005)

Chambers, D. and Dimson, E. (2009) "IPO underpricing over the very long run." Journal of Finance, 64(3): 1407-1443 (DOI: 10.1111/j.1540-6261.2009.01468.x)

Dimson, E., Marsh, P. and Staunton, M. (2008) "The worldwide equity risk premium: a smaller puzzle." In: Mehra, R. (ed.) Handbook of the equity risk premium. Amsterdam: Elsevier.

Acharya, S. and Dimson, E. (2007) Endowment asset management. Oxford: Oxford University Press.

Dimson, E., Marsh, P. and Staunton, M. (2002) Triumph of the optimists. Princeton, NJ: Princeton University Press.

Journal articles

Chambers, D. and Dimson, E. (2009) "IPO underpricing over the very long run." Journal of Finance, 64(3): 1407-1443 (DOI: 10.1111/j.1540-6261.2009.01468.x)

Dimson, E. and Spaenjers, C. (2011) "Ex post: the investment performance of collectible stamps." Journal of Financial Economics, 100(2): 443-458 (DOI: 10.1016/j.jfineco.2010.12.005)

Chambers D. and Dimson E. (2013) "Retrospectives: John Maynard Keynes, investment innovator." Journal of Economic Perspectives, 27(3): 213-228 (DOI: 10.1257/jep.27.3.213)

Dimson, E. and Spaenjers, C. (2014) "Investing in emotional assets." Financial Analysts Journal, 70(2): 20-25 (DOI: 10.2469/faj.v70.n2.8)

Chambers, D. and Dimson, E. (2015) "The British origins of the US endowment model." Financial Analysts Journal, 71(2): 10-14 (DOI: 10.2469/faj.v71.n2.7) (available online via the SSRN)

Chambers, D., Dimson, E. and Foo, J. (2015) "Keynes the stock market investor: a quantitative analysis." Journal of Financial and Quantitative Analysis, 50(4): 843-868 (DOI: 10.1017/S0022109015000186) (available online via the SSRN)

Dimson, E., Rousseau, P.L. and Spaenjers, C. (2015) "The price of wine." Journal of Financial Economics, 118(2): 431-449 (DOI: 10.1016/j.jfineco.2015.08.005) (available online via the SSRN)

Books, monographs, reports & case studies

Dimson, E., Marsh, P. and Staunton, M. (2002) Triumph of the optimists. Princeton, NJ: Princeton University Press.

Acharya, S. and Dimson, E. (2007) Endowment asset management. Oxford: Oxford University Press.

Dimson, E., Marsh, P. and Staunton, M. (2014) Global investment returns yearbook 2014. Zurich: Credit Suisse Research Institute.

Book chapters

Dimson, E., Marsh, P. and Staunton, M. (2008) "The worldwide equity risk premium: a smaller puzzle." In: Mehra, R. (ed.) Handbook of the equity risk premium. Amsterdam: Elsevier.

Dimson, E. and Spaenjers, C. (2014) "The investment performance of art and other collectibles." In: Dempster, A.M. (ed.) Risk and uncertainty in the art world. London: Bloomsbury Publishing, pp.219-238

Chambers, D., Dimson, E. and Foo, J. (2015) "Keynes, King's and endowment asset management." In: Brown, J.R. and Hoxby, C.M. (eds.) How the financial crisis and great recession affected higher education: National Bureau of Economic Research Conference Report. Chicago, IL: University of Chicago Press, pp.127-150

Unconventional investments: what we can learn from Keynes

Why the lauded economist’s unconventional views on active management and long term investment could unlock the potential of a modern investment strategy. …

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Research on inclusive capitalism

Corporate engagement project involving Professor Elroy Dimson of Cambridge Judge selected by the Principles for Responsible Investment organisation. The Principles for Responsible …

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Prize-winning Keynes article

Article on how Keynes influenced management of US college endowments, authored by Dr David Chambers and Elroy Dimson of Cambridge Judge, wins …

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Hiking (of interest rates) can damage your wealth

Historical analysis of 21 countries over the past 116 years shows real equity and bond returns higher after interest rate cut than …

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UK small and mid-caps outperform in 2015

The Numis Smaller Companies Index (“NSCI”) Annual Review 2016, co-authored by Elroy Dimson of Cambridge Judge Business School, reported today that the …

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‘Less confrontational’ investor engagement

Environmental and social engagement by investors helps firms improve both financial performance and governance, finds study co-authored by Elroy Dimson of Cambridge …

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The price of wine

Study on fine wine values co-authored by Elroy Dimson of Cambridge Judge is featured in Decanter magazine as part of its 40th …

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Investment principles

In analysis for Norway’s sovereign wealth fund, Elroy Dimson of Cambridge Judge Business School outlines principles for responsible investment. Elroy Dimson, Chairman …

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Keynes the investor

In a blog and podcast published by the CFA Institute, David Chambers of the Newton Centre for Endowment Asset Management at Cambridge …

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2015 Commonfund Prize Winner announced

Winning paper: Tim Jenkinson, Howard Jones, (Saïd Business School, University of Oxford) and Jose Martinez (University of Connecticut School of Business) for …

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‘Responsible’ investing

Is there a price to having principles? The best-performing stocks since 1900 have been tobacco in the United States and alcohol in …

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The Cambridge-Oslo connection

Norway’s Sovereign Wealth Fund advised by panel including Elroy Dimson. An expert panel that includes Elroy Dimson, professor of finance and chairman …

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University of Cambridge and Newton Investment Management announce partnership on long-horizon investing

The University of Cambridge Judge Business School’s Centre for Endowment Asset Management has entered into a five-year partnership with Newton Investment Management, …

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Investing from the heart

Cars, art, wine and watches: emotional assets are becoming an increasingly popular alternative to traditional investments. But, as Cambridge Judge Business School’s …

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New research reveals that wine outperformed art, stamps and bonds throughout the 20th century

Canny investors who have so far left wine out of their portfolio may want to think again Canny investors who have so …

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Investing in 2013? Ask John Maynard Keynes

Economist John Maynard Keynes ran the endowment fund at King’s College from 1921 until his death in 1946. His highly successful approach …

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Professor Elroy Dimson appointed as new Chair of FTSE Policy Group

Professor Elroy Dimson, co-director of the Centre for Endowment Asset Management at Cambridge Judge Business School, has accepted the position of Chairman …

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From top to bottom

A new analysis reveals Keynes extraordinary returns hinged on a radical switch he made from being a ‘top down’ macro manager to …

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From top to bottom

john myA new analysis reveals Keynes extraordinary returns hinged on a radical switch he made from being a ‘top down’ macro manager …

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Endowment asset management

Academics, investment professionals, philanthropists, directors of not-for-profit organisations and the charity sector are an under-serviced segment of the market which the School’s …

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The Daily Telegraph: How to invest like… Norway’s oil fund

James Connington looks into the Norwegian state pension fund, the world’s third largest wealth fund worth £700bn. Individual investors could learn lessons …

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Financial Times: Donald Trump and the bonfire of the certainties

John Authers writes about financial uncertainty in the US after the president election. A book co-authored by Professor Elroy Dimson, Chairman of …

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Financial Times: Ethical investing’s rebranding is actually one of substance

John Authers looks at ethical investing and how it could bring more value to investors. Elroy Dimson, Chairman of the Newton Centre …

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The Economist: Back in fashion: Emerging markets are popular with investors again

The stockmarkets of developing countries are getting more popular with investors again and this year they have generated a return of 13 …

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The Wall Street Journal: The new abnormal: coping with weirdness in bonds

Jason Zweig looks at low interest rates and how this affects investment. Research co-authored by Professor Elroy Dimson, Chairman of the Newton …

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The Wall Street Journal: The more it hurts, the more you make it: Investing after Brexit

Jason Zweig looks at the current investment opportunities after last week’s referendum in the UK. Professor Elroy Dimson, Chairman of the Newton …

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Cambridge News: Keynes and the US universities’ money

An article by Dr David Chambers and Professor Elroy Dimson of the Newton Centre for Endowment Asset Management at Cambridge Judge on …

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The Financial: Finance experts receive Graham & Dodd Award

An article by Dr David Chambers and Professor Elroy Dimson of the Newton Centre for Endowment Asset Management at Cambridge Judge on …

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Cambridge Business Magazine Markets ‘kind’ to midcaps along with microcaps

2015 was a difficult year for global stock markets. However, amid the gloom there was a bright spot in the form of …

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Financial Times: Rising interest rates are bad for stocks

A study on the relationship between equity values and interest rates co-authored by Professor Elroy Dimson, Chairman of the Newton Centre for …

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Investors Chronicle: Three charts to explain rate rises, asset prices and Yellen’s dilemma

Ian Smith writes about equities and bonds, based on a study co-authored at Cambridge Judge. A historical analysis of 21 countries over …

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Arts and Collections International: Art investment: Risk and reward

Wine outperformed art, stamps and bonds throughout the 20th century, says a study co-authored by Professor Elroy Dimson, Chairman of the Newton …

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The Economist: Watch what they pay

A study on historical stock market returns co-authored by Professor Elroy Dimson, Chairman of the Newton Centre for Endowment Asset Management at …

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Financial Times: US equities: Patience needed for volatile US small-caps

The Numis Smaller Companies Index (“NSCI”) Annual Review 2016 reported that the NSCI ended 2015 with a return that was significantly ahead …

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Financial Times: Small-caps outperform the FTSE yet again

The Numis Smaller Companies Index (NSCI) review co-authored by Professor Elroy Dimson of Cambridge Judge found that smaller UK companies posted positive …

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Financial Times: Climate talks mark turning point for investors

John Authers looks at the legacy of the COP21 Paris conference. Businesses are preparing to make a turning point for institutional investment. …

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Financial Times: Bordeaux wine is for investing, not just for drinking

A study co-authored by Professor Elroy Dimson, Chairman of the Newton Centre for Endowment Asset Management at Cambridge’s Judge Business School, found …

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Financial Times: Wine is a fine investment

Investing in fine wine has a bright future, according to research co-authored by Elroy Dimson, professor at Cambridge Judge Business School. He …

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The Economist: Many unhappy returns

The Economist looks at future investment returns by pension funds and endowments. A study co-authored by Professor Elroy Dimson, Chairman of the …

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Cambridge Business Magazine: Keynes’ role as an investor chronicled

David Chambers and Elroy Dimson of the Newton Centre for Endowment Asset Management (CEAM) at Cambridge Judge outlined John Maynard Keynes’s role …

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Contact details

Elroy Dimson
Cambridge Judge Business School
University of Cambridge
Trumpington Street
Cambridge CB2 1AG
UK

e.dimson@jbs.cam.ac.uk

News & insights

Canny investors who have so far left wine out of their portfolio may want to think again

New research from Professor Elroy Dimson and his co-authors reveals that wine outperformed art, stamps and bonds throughout the 20th century.

Read more

Investing in 2013? Ask John Maynard Keynes

Economist John Maynard Keynes ran the endowment fund at King’s College from 1921 until his death in 1946. His highly successful approach is providing valuable insight for today’s investors.

Read more