Sunday, February 21, 2010

Quants!



This book seems to be mainly about the alpha-seeking variety of quant, as opposed to the risk managing or derivatives pricing kind. A little gee-whizzy for me, but might be good for some insight into the activities of groups like PDT, AQR, etc.

WSJ: ... At Morgan Stanley's investing powerhouse Process Driven Trading on Monday, Aug. 6, founder Peter Muller was AWOL, visiting a friend near Boston. Mike Reed and Amy Wong manned the helm, PDT veterans from the days when the group was nothing more than a thought experiment, its traders a small band of young math whizzes tinkering with computers like brainy teenagers in a cluttered garage.

On Wall Street, they were all known as "quants," traders and financial engineers who used brain-twisting math and superpowered computers to pluck billions in fleeting dollars out of the market. Instead of looking at individual companies and their performance, management and competitors, they use math formulas to make bets on which stocks were going up or down. By the early 2000s, such tech-savvy investors had come to dominate Wall Street, helped by theoretical breakthroughs in the application of mathematics to financial markets, advances that had earned their discoverers several shelves of Nobel Prizes. ...


1 comment:

Ian Smith said...

The most impressive thing about AsSness is how UN-impressive he is.

He's a moron.

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