Roger G. Ibbotson
Professor in the Practice of Finance, School of Management, Yale University, New Haven, Conn.
Chairman, Ibbotson Associates Inc., Chicago
Roger G. Ibbotson is the leading expert in capital market returns.
His collaboration with Rex A. Sinquefield in the 1970s changed the way pension funds and other institutional investors manage their money.
Their studies comparing historical capital market returns and risk provided the intellectual foundation for favoring one asset class over another.
The studies became the standard reference for asset allocation studies by fund sponsors. Their work provided a benchmarks for institutional investors to measure performance of their active money managers in major asset classes and for fund sponsors to measure their own performance in asset allocation. The studies also helped provide a rationale for index investing.
Mr. Ibbotson's firm, Ibbotson Associates, has updated the market return series used in the Ibbotson-Sinquefield studies annually, providing return series for U.S. stocks, bonds, bills and inflation since 1926. This now 77-year perspective shows that through diverse events, stocks prevailed in the long run.
Mr. Ibbotson has been a meticulous and incessant scholar of market returns.
Among his other studies, he collaborated with Yasushi Hamao to produce "Stocks, Bond and Inflation Japan," published in 1989. It provides historical capital market returns and risk in Japan. He studied empirical returns and risk of real estate in the U.S. over the 1972-1999 period. In 2000, a study he co-authored on the historical performance of New York Stock Exchange stocks provided even a longer perspective of equity returns and risk, covering the period from 1915 through 1925. More recently, he has annualized the historical returns of mutual funds and of hedge funds, among other studies.
Mr. Ibbotson is also a partner in Zebra Capital Management LLC, which manages long-short equity market-neutral hedge funds. He serves on the board of directors of Dimensional Fund Advisors Inc., Santa Monica Calif.; Mr. Sinquefield is co-chairman of the firm.
Through Ibbotson Associates, Mr. Ibbotson also has been a force in the market in producing investment software and in investment consulting, including in the 401(k) market. Earlier this year, the firm started a hedge fund advisory service that will offer due diligence and selection, portfolio construction and risk management for financial intermediaries.
Mr. Ibbotson's "work with Rex Sinquefield is one of the foundations of consulting," said Margarett H. Gorodess, executive consultant, Becker, Burke Associates Inc., Chicago.