“This is a book I wish I had 15 years ago at the start of my career. It is an invaluable resource for any discretionary stock picker, quantitative researcher, or data analyst. As these worlds continue to converge in financial markets, I have no doubt that the concepts laid out in this book will be a critical component of success for all practitioners.”
―Todd Barker, Portfolio Manager
“As a seasoned risk management practitioner, Giuseppe knows that successful portfolio managers are able to incorporate risk management disciplines into their investment process. Giuseppe has brought together the key components of this in his book, Advanced Portfolio Management, in an easily digestible style that only he can do. I highly recommend this book for all portfolio managers who are looking to enhance their long-term performance.”
―Stephen Haratunian, Head of Enterprise Risk, Millennium
“The unique combination of Giuseppe’s insights as a practitioner combined with his deep quantitative savvy makes Advanced Portfolio Management a must-read for any current or aspiring professional investor who wants to have staying power and compete effectively in today’s challenging market environment.”
―Gustav Rydbeck, Partner and COO of Equities, Balyasny Asset Management
“This is a comprehensive and practical guide to the fundamentals of risk management and portfolio construction, written by an industry insider (with a quirky Italian sense of humor). Any fundamental analyst or portfolio manager will find this book an invaluable resource in grasping the foundational concepts of portfolio management. The fact that the book is funny and enjoyable to read is a small consolation for Giuseppe having given away such valuable industry secrets!”
―Brandon Haley, Founder and CIO, Holocene Advisors, LP
“Bravo, Giuseppe, for providing investors with a useful and practical resource on the art of factor neutral portfolio construction, which until now could only be learned on the job, through years of apprenticeship.”
―Michael Rockefeller, Founder and co-CIO, Woodline Partners, LP
“Top performing portfolio management combines fundamental security selection with systematic portfolio construction and risk management. Giuseppe integrates his best-in-class subject expertise with over a decade of market experience at industry leading hedge funds to provide practitioners with actionable insights and wisdom they can use in the everyday construction of their portfolios. This book will become the industry reference and a catalyst for portfolio managers to adopt these best practices.”
―David Stemerman, Co-Founder, Chief Executive Officer, and Chief Investment Officer, CenterBook Partners
As measured by assets under management (AUM), the majority of equity investing is driven by fundamentals. Portfolio managers identify investment opportunities and translate them into portfolios. Over the past 30 years, the industry has matured and become more sophisticated. One of the most crucial concepts in this maturation process has been factor modeling.
In Advanced Portfolio Management: A Quant’s Guide for Fundamental Investors, renowned risk and finance expert Giuseppe Paleologo delivers an insightful and practical guide to turning your investment ideas and knowledge into profitable trades. The author introduces you to a framework for portfolio construction and risk management that is both theoretically grounded and market-tested by successful portfolio managers.
In this book, you’ll find simple and effective rules of thumb as well as sophisticated techniques that combine to help you overcome the challenges every investor faces as their portfolio grows in size and complexity. Whether you’re trying to separate stock-specific return drivers from the investment environment’s return drivers or measuring and decomposing risk, Advanced Portfolio Management shows you how to use the flexible framework of factor modeling for risk quantification, portfolio analysis, and portfolio construction.
Containing a quantitative appendix as well as more advanced material that will benefit quantitative researchers who are members of fundamental teams, this book will benefit you regardless of whether you have access to risk models or an advanced mathematical background.
Perfect for buy-side investors and analysts, Advanced Portfolio Management: A Quant’s Guide for Fundamental Investors is also an indispensable resource for portfolio managers seeking a powerful way for fundamental stock pickers to get an investment edge and beat the market on a regular basis.
From the Back Cover
Praise for ADVANCED PORTFOLIO MANAGEMENT
“This is a book I wish I had 15 years ago at the start of my career. It is an invaluable resource for any discretionary stock picker, quantitative researcher, or data analyst. As these worlds continue to converge in financial markets, I have no doubt that the concepts laid out in this book will be a critical component of success for all practitioners.”
―Todd Barker, Portfolio Manager
“As a seasoned risk management practitioner, Giuseppe knows that successful portfolio managers are able to incorporate risk management disciplines into their investment process. Giuseppe has brought together the key components of this in his book, Advanced Portfolio Management, in an easily digestible style that only he can do. I highly recommend this book for all portfolio managers who are looking to enhance their long-term performance.”
―Stephen Haratunian, Head of Enterprise Risk, Millennium
“The unique combination of Giuseppe’s insights as a practitioner combined with his deep quantitative savvy makes Advanced Portfolio Management a must read for any current or aspiring professional investor who wants to have staying power and compete effectively in today’s challenging market environment.”
―Gustav Rydbeck, Partner and COO of Equities, Balyasny Asset Management
“This is a comprehensive and practical guide to the fundamentals of risk management and portfolio construction, written by an industry insider (with a quirky Italian sense of humor). Any fundamental analyst or portfolio manager will find this book an invaluable resource in grasping the foundational concepts of portfolio management. The fact that the book is funny and enjoyable to read is a small consolation for Giuseppe having given away such valuable industry secrets!”
―Brandon Haley, Founder and CIO, Holocene Advisors, LP
“Bravo, Giuseppe, for providing investors with a useful and practical resource on the art of factor neutral portfolio construction, which until now could only be learned on the job, through years of apprenticeship.”
―Michael Rockefeller, Founder and co-CIO, Woodline Partners, LP
About the Author
GIUSEPPE PALEOLOGO is the Head of Risk Management at Hudson River Trading. He has also held senior positions at Millennium, Citadel, Axioma, and IBM Research. He was formerly a mathematical researcher at Stanford and an instructor in the master’s program in Financial Engineering at Cornell University.
