Fama-French Factor Investing

Systematic stock selection using the Nobel Prize-winning factor model, inspired by David Booth and Dimensional Fund Advisors.

The Fama-French Factor Model

Eugene Fama and Kenneth French identified systematic risk factors that explain stock returns beyond market risk. Our system scores every stock across six factors.

David Booth's Investment Principles

Co-founder of Dimensional Fund Advisors (~$800B AUM), David Booth pioneered applying academic finance research to real portfolios.

🎯 Systematic Factor Tilts

Tilt toward value, small-cap, and high-profitability stocks — areas with higher expected returns backed by decades of research.

📊 Rules-Based Discipline

Remove emotion from investing. Follow a consistent, quantitative process that doesn't chase trends or time markets.

🌐 Broad Diversification

Spread risk across many holdings and sectors. No single stock should make or break the portfolio.

🔬 Research-Driven

Every investment decision grounded in peer-reviewed academic research, not speculation or market narratives.

2-Month Backtest Results

Stocks our model would have selected 2 months ago, with actual performance. $1,000 invested in each stock.

Top 10 Picks — Next Month

Stocks selected by our factor model for the coming month, ranked by composite Fama-French score.

Gradient Boosting Enhancement

A gradient boosting model trained on factor features to predict forward returns, adding a data-driven layer to the academic framework.

⚠️ Disclaimer: This is an educational tool demonstrating factor-based stock analysis. It is NOT financial advice. Past performance does not guarantee future results. Factor premiums can be negative for extended periods. Always consult a qualified financial advisor before making investment decisions. Data sourced from Yahoo Finance; may contain errors or delays.