Advanced Portfolio Management: A Quant's Guide for Fundamental Investors

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