Are alpha models really what the quant lives for? Rishi Narang- the founder and chief executive of Telesis Capital, lets loose on the “misconceptions” of the modern-day quant:
Tags: alpha, cost, data, empirical, fees, impact, inputs, market, models, optimization, portfolio, quant, research, Rishi Narang, risk, slippage, Telesis Capital, theoretical, transaction, weightings
Narang goes into similar detail on risk models, including theoretical, empirical and transaction cost models, which look at fees; as well as slippage and market impact. Putting all this together, he goes on to explain how quants build portfolio construction models with systematic approaches to weightings and optimization. Data and research are, of course, crucial inputs into quant trading approaches, and Narang also offers separate chapters on these key areas.