Advanced Portfolio Management
Advanced Portfolio Management is a highly regarded book designed to bridge the gap between fundamental stock picking and quantitative portfolio construction. Authored by Giuseppe Paleologo, the book offers a practical, intuitive framework to turn investment ideas into diversified, risk-adjusted portfolios. Advanced Portfolio Management is grounded in sound theory and tested by successful fundamental portfolio managers. It fills a key educational gap between academic theory and real-world portfolio management, perfect for fundamental equity analysts and portfolio managers, present, and future. The book also contains more advanced material and a quantitative appendix, which benefit quantitative researchers who are members of fundamental teams.
KEY THEMES
From Ideas to Portfolios.
The book provides a repeatable, rule-based process for sizing, combining, and managing ideas to make coherent, resilient portfolios.
Risk Management Simplified.
The book provides tools for decomposing portfolio risk, identifying unwanted bets, and using hedges effectively.
Sizing & Diversification.
It offers clear methods for sizing positions, determining cash allocations, and building portfolios that balance concentration with diversification.
Scaling with Leverage.
It discusses the responsible use of leverage and tail risk control, and introduces techniques for preserving portfolio integrity at scale.
Quantitative Tools.
It includes a quant appendix for those wanting to dive deeper, and prioritizes clarity and practical implementation over excessive math.
PRAISE FOR THE BOOK
“As a seasoned risk management practitioner, Giuseppe knows that successful portfolio managers are able to incorporate risk management disciplines into their investment process...”
―Stephen Haratunian, Head of Enterprise Risk, Millennium Management
“The unique combination of Giuseppe’s insights as a practitioner combined with his deep quantitative savvy makes Advanced Portfolio Management a must-read for any current or aspiring professional investor who wants to have staying power and compete effectively in today’s challenging market environment.”
―Gustav Rydbeck, Partner and COO of Equities, Balyasny Asset Management
“This is a comprehensive and practical guide to the fundamentals of risk management and portfolio construction, written by an industry insider (with a quirky Italian sense of humor).”
―Brandon Haley, Founder and CIO, Holocene Advisors,
“Bravo, Giuseppe, for providing investors with a useful and practical resource on the art of factor neutral portfolio construction, which until now could only be learned on the job, through years of apprenticeship.”
―Michael Rockefeller, Founder and co-CIO, Woodline Partners, LP