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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; sustainable and responsible investing.

Subject group: Finance

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

  • University of Cambridge Vice-Chancellor’s Impact Award, 2017
  • 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

Simon Taylor and Elroy Dimson win Research Impact Awards

Dr Simon Taylor and Professor Elroy Dimson of Cambridge Judge are honoured with the School’s 2017 Sandra Dawson Research Impact Award. Dr …

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New honour for Professor Elroy Dimson

Professor Elroy Dimson of Cambridge Judge Business School elected to Supervisory Council of the Geneva Finance Research Institute. Professor Elroy Dimson, Chairman …

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Cambridge Judge research impact and engagement recognised

Elroy Dimson, Neil Stott and Belinda Bell of Cambridge Judge Business School are winners in the Vice-Chancellor’s Awards of the University of …

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Switzerland’s economic success

Low inflation and stability over more than a century have been keys to Switzerland’s economic success, says new report co-authored by Elroy …

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Vice-Chancellor’s awards 2017

Five Cambridge Judge Business School nominations for this year’s Vice-Chancellor’s Awards, with winners to be announced in July. Five people from Cambridge …

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The five key ‘factors’ in factor investing

With factor investing and smart beta strategies on the rise, Professor Elroy Dimson of Cambridge Judge Business looks at five central factors …

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Leading economists on corporate tax reform

The Financial Economists Roundtable, which includes Professor Elroy Dimson of Cambridge Judge, calls for retaining current “worldwide” US tax system but removing …

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Historical investment analysis

Modest inflation rises, based on historical precedent, should not adversely affect the real return on equity investing, says annual Credit Suisse Global …

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Lessons for today’s investors from financial market history

From 18th century ‘structured finance’ and currency speculation in the Middle Ages, to stock market performance in the 20th and 21st centuries. …

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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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Cambridge Business Magazine: Five key ‘factors’ in factor investing

With factor investing and smart beta strategies on the rise, Professor Elroy Dimson, Chairman of the Newton Centre for Endowment Asset Management …

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Business Weekly: University honours new Cambridge ideas changing the world

Faculty and experts from Cambridge Judge Business School were winners in both the Impact Awards and the Public Engagement with Research Awards …

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Globe Advisor: How to brace yourself for the inevitable stock-market crash

A study co-authored by Professor Elroy Dimson, Chairman of the Newton Centre for Endowment Asset Management (CEAM), is featured in the article. …

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Cambridge Business Magazine: Economists look for ‘pragmatic’ approach to corporate tax reform

The Financial Economists Roundtable, which includes Professor Elroy Dimson, Chairman of the Newton Centre for Endowment Asset Management (CEAM), calls for retaining …

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Neue Zürcher Zeitung: Switzerland as a financial giant

A new report co-authored by Professor Elroy Dimson, Chairman of the Newton Centre for Endowment Asset Management (CEAM), says low inflation and …

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Ignites Europe: Selector raises concerns with multifactor smart beta funds

Professor Elroy Dimson, Chairman of the Newton Centre for Endowment Asset Management (CEAM) at Cambridge Judge Business School, comments on multifactor funds …

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Cambridge Business Magazine: Don’t panic!

Stock market bubbles are rare so investors shouldn’t overreact, says a new book edited by Dr David Chambers and Professor Elroy Dimson …

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Financial Times: Obituary: Theorist who honed how best to price traded assets

FT collects comments from various experts for the obituary for financial economist Stephen Ross (1944-2017). “It’s fair to say that Steve Ross …

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The Economist: Do smart-beta investment funds work?

Researchers including Professor Elroy Dimson, Chairman of the Newton Centre for Endowment Asset Management at Cambridge Judge Business School, have found 316 …

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Global Investor Magazine: Judgement day for smart beta

Further coverage of a report co-authored by Professor Elroy Dimson. The Credit Suisse Global Investment Returns Yearbook 2017 looks at returns on …

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Financial Times: Popular ‘smart beta’ strategies reveal their true value in trial

“Smart beta” factors are now among the investment industry’s biggest earners, writes John Authers in the FT. Most popular factors, including value, …

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The Economist: Interest rates and investment returns

Real interest rates, as measured by inflation-linked bonds, are around minus one per cent in big rich economies. A new report co-authored …

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Financial Times: Trump reflation trade goes global

An article looks at stock markets in the US, Europe and China, and what investors should expect in the future. A report …

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Yahoo Finance: America’s stock market was dominated by one industry in 1900

According to Credit Suisse’s recent report, railroads dominated the US stock market at the beginning of the 20th century, but this has …

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Financial Times: The importance of bubbles that did not burst

John Authers looks at the history of investment bubbles and why it’s vital to spot it on time. The article mentions a …

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The Economist: Bubbles are rarer than you think

A new book Financial Market History, edited by Dr David Chambers and Professor Elroy Dimson of the Newton Centre for Endowment Asset …

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The National: Keynes’ words of wisdom remain relevant for 2017

What would John Maynard Keynes do if he was investing in 2017? The article cites analysis by Dr David Chambers and Professor …

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ESG Magazine: The 2016 winners

The FIR-PRI Awards, which have been running since 2005, have established themselves as one of the highest-profile bursary competitions supporting academic research …

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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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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.

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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 is providing valuable insight for today’s investors.

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