A new documentary entitled “Tune The Noise” combines some of the academic heavyweights, the work of which was redesigning the financial industry and reducing the costs for all investors.
The film, which was shot by Oscar-price-crowned documentary filmmaker Errol Morris, records the rise of academic financing in the middle of the 20th century and how it led to a boom in passive investments and the creation of dimensional fund advisors, which now had a fortune of over $ 700 billion.
Morris and David Booth, the dimensional chair and the namesake of the BOK School of Business at the University of Chicago, spoke to Bob Pisani from CNBC in front of the film of the film on Thursday.
“It is really about how markets work and how different this is from the intuition or perception of people,” said Booth to Pisani.
In addition to Booth and some dimensional managers, the film contains interviews with many of the biggest names of the Finance Academy, including Myron Scholes, Robert Merton, Eugene Fama and Kenneth French.
The work of these academics, who have had all roles over the years, contributed to promoting the investment world from the traditional share selection to passive, inexpensive strategies. This trend goes beyond the dimension, and companies like Vanguard use this findings to build their own companies.
“People are now getting a much better offer than at the beginning of 1971,” said Booth.
Morris' earlier work includes “The Fog of War”, which won the Oscar for the best documentation and “The Thin Blue Line” in 2004.
“One of the reasons why I became a filmmaker or documentary filmmaker, as you want to call it, is that I like to hear people tell stories. And that is fulfilled,” said Morris about his new film.