The Elements of Quantitative Investing (Wiley Finance) - Hardcover

Paleologo, Giuseppe A.

Hardcover

ISBN 10: 139426545X ISBN 13: 9781394265459

Publisher: Wiley, 2025

Synopsis

Expert real-world insight on the intricacies of quantitative trading before, during, and after the trade

The Elements of Quantitative Investing is a comprehensive guide to quantitative investing, covering everything readers need to know from inception of a strategy, to execution, to post-trade analysis, with insight into all the quantitative methods used throughout the investment process. This book describes all the steps of quantitative modeling, including statistical properties of returns, factor model, portfolio management, and more. The inclusion of each topic is determined by real-world applicability. Divided into three parts, each corresponding to a phase of the investment process, this book focuses on well-known factor models, such as PCA, but with essential grounding in financial context. This book encourages the reader to think deeply about simple things.

The author, Giuseppe Paleologo, has held senior quantitative research and risk management positions at three of the four biggest hedge fund platforms in the world, and at one of the top three proprietary trading firms. Currently, he serves as the Head of Quantitative Research at Balyasny Asset Management with $21 billion in assets under management. He has held teaching positions at Cornell University and New York University and holds a Ph.D. and two M.S. from Stanford University. This book answers questions that every quantitative investor has asked at some point in their career, including:

• How do I model multivariate returns?
• How do I test these models, either developed by me or by commercial vendors?
• How do I incorporate asset-specific data in my model?
• How do I convert risk appetite and expected returns into a portfolio?
• How do I account for transaction costs in portfolio management?

The Elements of Quantitative Investing earns a well-deserved spot on the bookshelves of financial practitioners seeking expert insight from a leading financial executive on quantitative investment topics―knowledge which is usually accessible to few and transmitted by one-on-one apprenticeship.

About this title

About the Author

GIUSEPPE A. PALEOLOGO, PhD, is the Head of Quantitative Research at Balyasny Asset Management. Previously, he held senior positions in quantitative research and risk at Citadel, Millennium, and Hudson River Trading. He has extensive experience in equities quantitative risk management, portfolio construction, and alpha signal research. He holds a doctorate in Management Science and Engineering from Stanford University.

From the Back Cover

Practical and relevant insights into the intricacies of quantitative trading at every stage of the investing process

The Elements of Quantitative Investing is an in insightful and practical roadmap to every part of the quantitative investing process, from strategy formulation to post-trade analysis. Written by Dr. Giuseppe Paleologo, the author of the widely read Advanced Portfolio Management: A Quant’s Guide for Fundamental Investors, the book walks you through every step of quantitative modeling.

You’ll learn about the statistical properties of returns, factor models, and portfolio management as you discover critical quantitative investing concepts grounded in key financial context. Everything that’s been included in the book is highly relevant to quantitative investing in contemporary markets, and the author has focused exclusively on those subjects that can advance a quantitative investor’s success in an increasingly competitive financial marketplace.

Perfect for financial practitioners looking for applicable insights from one of the industry’s leading lights, The Elements of Quantitative Investing makes accessible information, techniques, strategies, and knowledge typically available only to a select few. It’s an essential and hands-on guide to quantitative investing.

From the Inside Flap

In The Elements of Quantitative Investing, celebrated quantitative research and investment expert Dr. Giuseppe Paleologo delivers a comprehensive guide to quantitative investing. The author covers everything you need to know about the subject, from strategy formulation to investment plan execution and post-trade analysis and provides key insights into all the quantitative methods used throughout the investment process.

You’ll discover authoritative descriptions of every step of the quantitative modeling process, including statistical properties of returns, factor models, portfolio management, and more. The book is divided into three parts ― each corresponding to a different phase of the investment process ― and focuses on well-known factor models, like Principal Component Analysis, with an essential grounding in financial contexts.

The Elements of Quantitative Investing encourages readers to think deeply about simple things and shows you how to attack and solve the practical problems that arise for every quantitative investor: How do I model multivariate returns? How do I test models I’ve developed or obtained from commercial vendors? How do I incorporate asset-specific data in my model? How do I convert risk appetite and expected returns into a portfolio? How should I account for transaction costs in portfolio management?

The book answers all these questions, and more. It’s the perfect guide for financial practitioners seeking expert insights from a leading financial executive on quantitative investment topics. Packed with information that is usually only accessible for those apprenticing under practicing quantitative investors, The Elements of Quantitative Investing is the hands-on roadmap to the subject that you’ve been waiting for.

Edition details

• Publisher: Wiley
• Publication date: 2025
• Language: English
• ISBN 10: 139426545X
• ISBN 13: 9781394265459
• Binding: Hardcover
• Edition number: 1
• Number of pages: 400