Crazy Quants
Trader Daily snagged the sexist read of the day...we could tell you more, but would have to kill you at the end. Hopefully these Geniuses fare better than Lowenstein’s
Goldman Secrets
Working out of a granite-and-glass office tower a few blocks from Goldman Sachs’s Broad Street headquarters in lower Manhattan, Carhart and Iwanowski hunt for market variables called risk factors that often lead to excess investment returns, or premiums, according to people familiar with the fund.
Some, such as a measure called the value premium—the difference between the return of a group of stocks with high book values relative to their prices and that of a group with low book value-to-price ratios—have been used by other money managers for years. Goldman Sachs has identified more than 20 new risk factors, which it doesn’t disclose, even to its own investors.
Carhart never reveals the secrets. Old friends and people who’ve invested in the fund say they’re not really sure how it works.
John Cochrane, one of Carhart’s professors at the University of Chicago, says that based partly on what Carhart has told him—not much, he admits—Goldman Sachs has devised five or so proprietary risk factors for equity markets. Bloomberg/Richard Teitelbaum
Great work Mr. Teitelbaum
--------------------------------------------------------------------------------------------------------------------------------------
Are you a real quant?
Mathematical discoveries, small or great are never born of spontaneous generation. They always presuppose a soil seeded with preliminary knowledge and well prepared by labor, both conscious and subconscious.
Jules Henri Poincaré (1854-1912)
Does staring at your screen drive you to drink? You can quaff a few with QWAFAFEW
Quants only please
-------------------------------------------------------------------------------------------------------------------------------------
The content contained in this blog represents the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author.
Comments:
Next entry: Coupon Clipping
Previous entry: Birthday Boy
