Machine Learning In Investing

, , , , ,
Machine learning can be used in investing in a variety of ways. This article seeks to show a few of those and describe the basics. Hedge funds have tried for years to use machine learning (or AI) in their funds. Moving on to today, all quantitative…

Limiting Drawdowns Rather Than Maximizing Returns

, ,
Prominent asset manager Mary Meeker once said her primary goal is limiting drawdowns! While most portfolio construction is explicitly or implicitly focused on returns, she knew that minimizing events that can decimate the portfolio is more important…

Machine Learning in Finance and Investing

, , ,
The first time I heard the term ‘Artificial Intelligence’ was in the 1980s, when my dad worked for Digital Equipment Corporation, in the Silicon Valley of the East (Massachusetts). And yes they made computer chips from Silicon. In the 80’s…

How To Best Evaluate A Portfolio

, , ,
Recently I saw an article about Monte Carlo Analysis, which (as you know) is a way to evaluate a person’s ability to meet their future income needs. Using a portfolio of securities or asset allocations it runs through as many rolling periods…

Passive Investing Creates Opportunities for Active Pros

, ,
It's commonly known in the industry that passive investing keeps growing and active investing is under pressure from all sides. First there are fees. For a decade or more, books have been written about the impact of fees on portfolios.…

A Better Portfolio Optimization Method

, , ,
You may have heard of Markowitz’s Critical Line Algorithm, or CLA. CLA was Markowitz’s attempt to solve the problem of portfolio optimization using quadratic math. For a couple reasons is was an ingenious invention. But it also has its…