Book strong in theory (mathematical) and practice of portfolio mgmt?

Discussion in 'Educational Resources' started by blueraincap, Nov 19, 2019.

  1. I read various equity investment/portfolio mgmt books but most fall into either big-mouth talk-talk (frank fabozzi-style or MBA/CFA-like) or mathematical/theoretical with little practical value. Any pointers to good books similar to Ludwig/Kim, Edward Qian
    tommcginnis likes this.
  2. gaussian


    You can probably go to MIT or Stanford’s website and look at the textbook used in a quantitative finance course. The primary thing you seem to want to learn is MPT, the efficient frontier, and portfolio selection which these books will likely more than satisfactorily cover.
    tommcginnis likes this.
  3. Nah, MPT/frontier is what I see fall into the purely theoretical camp
  4. gaussian


    So you’re only interested in suboptimal portfolio allocations? Interesting angle. Of all of the theoretical math, MPT is about as practical as it comes for a large enough portfolio. Gotta lose money to confuse the market, I guess.
    Last edited: Nov 19, 2019
  5. MPT is practical? are you kidding? the theoretical underpinning is correct, but how do you actually apply? where do all those return/risk/correlation matrices come from? black-litterman is good though.
  6. tommcginnis


    It sounds like you want the hand-holding through the homework of a CFA approach. It won't kill you. :D
    Go get your hands dirty. :thumbsup::thumbsup: