Investing For Beginners

Investing For Beginners is a series of articles, resources, and other information about basic investments, value investing, quantitative research and other ideas.

Interview With a Quant

Recently, Quandl interviewed a senior quantitative portfolio manager at a large hedge fund.  She spoke about how she builds trading strategies–how she transitions from an abstract representation of the market to something concrete with genuine predictive powers.


Recently Quandl interviewed a senior quant portfolio manager

 

Interview With a Quant:  Part 1

It all starts with a hypothesis. I conjecture that there ought to be a relationship between two instruments, or maybe there’s a new instrument in the market that’s gaining popularity, or maybe there’s an unusual macroeconomic factor I’ve discovered that drives micro pricing behavior.   More ...


 

Interview With a Quant:  Part 2

I now have to worry about the “real world” — nuances like day-count conventions, settlement dates and holidays. When calibrating on historical data, you can get away with approximations for these. But when it comes to individual live trades, you can’t be sloppy; you have to be exact.   More ...


Interview With a Quant:  Part 3

I’m a big believer in manual PL reconciliation as a diagnostic tool. I like to know, every single day, exactly where my PL is coming from. What richened, what cheapened, by how much, and why. This gives me confidence that the model is working as designed, and it serves as an early warning system for bad news.  More ...