About this item
Highlights
- You have great investment ideas.
- About the Author: GIUSEPPE PALEOLOGO is the Head of Risk Management at Hudson River Trading.
- 208 Pages
- Business + Money Management, Investments & Securities
Description
About the Book
"The number of fundamental portfolio managers and investment analysts is very large. There are over 9,000 hedge funds in the world, the overwhelming majority of them managing exclusively or in part an equity portfolio. In addition, institutional managers actively manage trillions of dollars. Finally, no sell-side analyst can provide any recommendation to their buy-side interlocutor without having a good understanding of their investment process. Finally, risk managers on the buy-side and the sell-side alike, offer advisory to portfolio managers on optimization and risk quantification. The primary audience of my book is made of buy-side investors and analysts, who easily number in the thousands, and possibly the tens of thousands. The professional organizations supporting these investors are the Chartered Alternative Investment Analyst Association (CAIA) and the Chartered Financial Analyst (CFA) Institute. The secondary market comprises sell-side fundamental analysis and risk managers; as a rule of thumb, a well-established fund employs one risk manager for every 10 fundamental analysis, while banks and service firms have large rosters of industry-focused analysis. These professionals are served by the CFA Institute and two risk management associations: the Global Association of Risk Professionals (GARP) and the Professional Risk Managers' International Association (PRMIA). Despite this large audience, a guide on how to convert insights into portfolios is still missing"--Book Synopsis
You have great investment ideas. If you turn them into highly profitable portfolios, this book is for you.
Advanced Portfolio Management: A Quant's Guide for Fundamental Investors is for fundamental equity analysts and portfolio managers, present, and future. Whatever stage you are at in your career, you have valuable investment ideas but always need knowledge to turn them into money. This book will introduce you to a framework for portfolio construction and risk management that is grounded in sound theory and tested by successful fundamental portfolio managers. The emphasis is on theory relevant to fundamental portfolio managers that works in practice, enabling you to convert ideas into a strategy portfolio that is both profitable and resilient. Intuition always comes first, and this book helps to lay out simple but effective "rules of thumb" that require little effort to implement and understand. At the same time, the book shows how to implement sophisticated techniques in order to meet the challenges a successful investor faces as his or her strategy grows in size and complexity. Advanced Portfolio Management also contains more advanced material and a quantitative appendix, which benefit quantitative researchers who are members of fundamental teams.
You will learn how to:
- Separate stock-specific return drivers from the investment environment's return drivers
- Understand current investment themes
- Size your cash positions based on
- Your investment ideas
- Understand your performance
- Measure and decompose risk
- Hedge the risk you don't want
- Use diversification to your advantage
- Manage losses and control tail risk
- Set your leverage
Author Giuseppe A. Paleologo has consulted, collaborated, taught, and drank strong wine with some of the best stock-pickers in the world; he has traded tens of billions of dollars hedging and optimizing their books and has helped them navigate through big drawdowns and even bigger recoveries. Whether or not you have access to risk models or advanced mathematical background, you will benefit from the techniques and the insights contained in the book--and won't find them covered anywhere else.
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.