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Elroy Dimson

Elroy Dimson

Research Director (Finance & Accounting)
Chairman of the 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 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)

Chambers, D. and Dimson, E. (2016) "The master's choice." London Business School Review, 27(2): 38-39 (DOI: 10.1111/2057-1615.12117)

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

Dimson, E., Marsh, P. and Staunton, M. (2018) "The evolution of equity markets." In: Faber, M. and Remsburg, J. (eds.) The best investment writing: selected writing from leading investors and authors: vol.2. Petersfield: Harriman House (forthcoming)

Prose on investing

Article co-authored by Elroy Dimson of Cambridge Judge is included in a new book, The Best Investment Writing, Volume Two. An article on …

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Coordination awarded

Research paper on coordination by activist shareholders wins an award from the International Centre for Pension Management.   A research paper on …

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Investment research award

Paper on factor-based investing co-authored by Professor Elroy Dimson of Cambridge Judge wins Outstanding Article award from publisher of The Journal of …

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‘Savvy’ awards

Professor Elroy Dimson and Dr David Chambers of Cambridge Judge cited in Savvy Investor awards, for book on financial market history and …

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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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The Wall Street Journal: The market isn’t going to save you from saving too little

A report co-authored by Professor Elroy Dimson, Chairman of the Newton Centre for Endowment Asset Management at Cambridge Judge, is cited in …

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Arzte Zeitung: Wines are excellent assets

Wine is a great investment asset and can bring good returns in the long term. A report co-authored by Professor Elroy Dimson, …

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Money Week: Momentum investing: what it is, why it works and what to buy

Momentum investing, an investment style that developed 20-25 years ago, is still a valid approach. A report co-authored by Professor Elroy Dimson, …

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The Wall Street Journal: A decade later, US stocks behave like Lehman never happened

A report that looks at investment returns is mentioned in the article. The report, written for Credit Suisse and co-authored by Professor …

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Business Day: Tracker funds can also foster responsible investment practices

A research paper co-authored by Professor Elroy Dimson, Chairman of the Newton Centre for Endowment Asset Management (CEAM) at Cambridge Judge, is …

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The Wall Street Journal: The real risk is believing that volatility is risk

A report co-authored by Professor Elroy Dimson, Chairman of the Newton Centre for Endowment Asset Management (CEAM) at Cambridge Judge, is featured …

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Daily Reckoning: Investors quit the fag

Investors are turning away from tobacco stocks although this is one of the best-performing industries, according to a report co-authored by Professor …

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Seeking Alpha: Keynes’ art

Research co-authored by Dr David Chambers and Professor Elroy Dimson of the Newton Centre for Endowment Asset Management (CEAM) at Cambridge Judge …

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Meb Faber Research: High valuations don’t necessarily mean asset prices will collapse

In this podcast Professor Elroy Dimson, Chairman of the Newton Centre for Endowment Asset Management (CEAM) at Cambridge Judge Business School, talks …

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The Wall Street Journal: What it takes to build a $100 million art collection

Research co-authored by Dr David Chambers and Professor Elroy Dimson of the Newton Centre for Endowment Asset Management (CEAM) at Cambridge Judge …

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Daily Mail: Buying a house might not be the best bet for returns

The Global Investment Returns Yearbook for Credit Suisse co-authored by Professor Elroy Dimson, Chairman of the Newton Centre for Endowment Asset Management …

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The Wall Street Journal: Stocks are probably overpriced, but don’t be too sure

A recently published Global Investment Returns Yearbook produced for Credit Suisse provides information on different stock and bond markets going back to …

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The Economist: Why low returns are inevitable

The Global Investment Returns Yearbook for Credit Suisse co-authored by Professor Elroy Dimson, Chairman of the Newton Centre for Endowment Asset Management …

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Financial Times: Gold, violins and wine don’t cut it as a rival to stocks

The recently published Global Investment Returns Yearbook produced for Credit Suisse provides information on different stock and bond markets going back to …

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Financial Planning: Trump vs. Obama: Who had best first year stock market gains?

A report co-authored by Professor Elroy Dimson, Chairman of the Newton Centre for Endowment Asset Management (CEAM) at Cambridge Judge, is featured …

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Seeking Alpha: Financial market history can help today’s investors

In an interview for the FCA Institute, Professor Elroy Dimson and Dr David Chambers from the Newton Centre for Endowment Asset Management …

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Money Week: Where to find the hottest growth stocks

Where should investors put their money to get the best return? Professor Elroy Dimson, Chairman of the Newton Centre for Endowment Asset …

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Financial Times: Tulip bulbs vs bitcoin: a bubble comparison

Is cryptocurrency like 1990s-era tech stocks, the South Sea Company, or Dutch flowers? – asks the FT’s John Authers. A study on …

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Journal Economico: Investment in value or growth?

An interview with Professor Elroy Dimson, Chairman of the Newton Centre for Endowment Asset Management (CEAM) at Cambridge Judge. Professor Dimson talks …

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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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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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