| FRM | Meet the man leading a team of 80,000 quants
http://news.efinancialcareers.com/uk-en/249108/...
Jonathan Larkin has the fate of 80,000 wannabe quants in his hands. OK, this may be something of an exaggeration, but as the newly-installed chief investment officer of ‘crowd-sourced’ hedge fund Quantopian, he’s responsible for uncovering talent within its large ‘community’ of programmers, quants and data scientists.
Quantopian started life as a community of quants, providing a browser-based trading platform for its members to develop and experiment with investment ideas. It offered prizes and the coveted role of ‘quant in residence’ – an online mentoring role for top-performing members – to encourage participation.
If this all sounds like good fun, it’s now starting to get serious – Quantopian is preparing to open its doors to external investors before launching its own hedge fund by the end of this year, and will be relying on its members to come up with investment strategies. Larkin will be at the helm.
“We have 80,000 members, so to sift through these investment strategies to find the best, we rely a lot of an automated filtering process,” he says. “Once we identify the right strategy and the right candidate, we start the due diligence process and then commit to formally share a percentage of the PnL.”
In other words, you could essentially become a hedge fund trader based purely on the algorithms you create, rather than your experience or educational background. The reward for this is roughly 10% of the PnL.
Moving into managing money
This is an evolution for Quantopian. Previously, it offered top-performing quants $100k to manage for six months – they could keep any profits.
One winner, Simon Thornington, said it opened doors to an industry closed to those without experience. He’s since gone on to take a quant developer role at newly-launched hedge fund Mana Partners. A former ‘quant in residence’, Simon Meggs, is now a partner and head of trading at hedge fund Fulcrum Asset Management.
For Larkin, the CIO role at Quantopian represents a departure away from more traditional finance roles. He spent nearly nine years trading equity derivatives at J.P. Morgan before switching to the buy-side to lead Millennium Partners’ equities team.
Unusually, he then moved back to banking, as a managing director in Nomura’s prop trading division, Principal Strategies Group, in 2012. He stayed for just one year, however, before taking a role heading up equities at Bluecrest Capital Management in New York. He left in 2015 for a portfolio manager position at Hudson Bay Capital before signing up to Quantopian in June this year.
So, why move to Quantopian? “I’ve spent my career building the multi-manager business of hedge funds. We’re dramatically magnifying this – using the internet to scale a multi-manager hedge fund to a degree never seen before in the industry,” he says.
It’s also the chance to get into a business at the outset, he says. “I’ve always been interested in moving into a business where there’s a blank sheet of paper,” he says. “At Nomura, I grew the team from zero to 30 people, I joined J.P. Morgan’s equity derivatives team at an early stage and Millennium’s equities was at an inflection point when I arrived. Bringing my investment experience to Quantopian at this stage of the company’s growth is reflective of this.”
The data scientists, computer programmers and quants working on Quantopian can do so either full-time or as an aside to their regular job.
Hedge funds are currently struggling to find enough talent for these roles and many are having to come up with increasingly innovative ways to uncover new talent. Hedge fund Man Group AHL launched a coding competition last year, offering a $5k prize and a nine-week internship to the winner. Meanwhile, World Quant University – the educational arm of a hedge fund with the same name – offers an online Masters degree to aspiring quants.
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I write about big data, analytics and enterprise performance .
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How someone with quantitative background can pass FRM part one in a month (A rich man’s guide)
This piece is meant for someone who has a quantitative background and has some cash to throw a little around. I will share my personal experience with you later when it comes to the ‘The Poor Man’s Guide’ . I wrote FRM part one and passed in May 2016. I would like to show you how. By quantitative background I mean a minimum of a Master’s degree in Mathematics, Physics, Quantitative Economics, Quantitative Finance, Engineering or a similar area. If you don’t, please don’t try this method, you will fail miserably. Also, this might not work for workers unless you are on leave.
If you have one month and you feel you are not well prepared don’t be in despair. You are a ‘quant’ why should you fear. The FRM part one curriculum has been divided into 4 parts. They are Foundation of Risk Management, Quantitative Analysis, Financial Markets and Valuation of Risk Models. Now you have one month so there is still hope. The first thing I did was to drop quantitative analysis. There is nothing new to learn there, please it will waste your time and it will be boring because you already have a lot on your plate. You wouldn’t want to go through statistics and econometrics again, you already know that. So you have three left and three books to read in three weeks. Yes, I said three weeks because your last week will be to solve questions.
Many candidates make the mistake of thinking you need to study everything to pass FRM part one. Just make sure you have gone through at least 80% of each of the three books very well and trust me you will pass. What we are going to do now is to grind through about 800 pages in three weeks. You forgot something you have money so you don’t need to do that. Just make sure you read at least 80% of the three chapters once, Yes, I said once. Let your money work for you. From all my browsing and searching the best FRM part 1 videos I have gone through that teaches the concepts in depth is that from ‘Fintreeindia’ that guy is very great, for $200 you will get the full package. The rest of the package is not that great, but it can be an addition. 8 hours a day, six times a week, 1 day for foundations, 2 days for financial markets and 2 days for valuations of risk models. Read to your understanding once, then watch the ‘Fintreeindia’ videos and take notes.
On the sixth day use Bionic Turtle’s basic package to review the topics you studied for in that week. BT study notes are concise and to the points and they give a review questions for each chapter to guide you to have some hands-on practice on some few questions to keep the stuff in your brain. BT will cost about $250
By the end of the third week you should have made sure you have completed at least 80% of each part. Now the fourth week is for solving the questions. This time, no disturbance, be in an isolated quiet place and get your ‘WILEY’ question bank for about $90. The reason why I suggest Wiley question bank is that they have about 500 questions for each part. Make sure you go through everything, including those for quantitative analysis in the first 4 days. Revisit the ones you still had troubles with and make sure you have a fair understanding of all the answers to the questions
The 1st of the final 2 days before the exam will be for solving the question bank provided by GARP that comes in a set of 25 questions each. Here you train yourself in solving 25 questions in one hour and you have, to be honest with yourself because the exam day will expose your dishonesty. What I did myself was to answer all the question that did not require calculation first before I started tackling the questions that required calculations. You do it and grade yourself. The more you tackle the more you get a feel of how exam day will be like. GARP does not repeat questions so forget it you are not solving it to meet similar questions, it only helps you to have a feel and work on your speed. Go through about 5 of them, review the topics that gave you some difficulties and you are set for the mock provided by GARP the next day.
On day 6, of the final week, get yourself a timer and make sure you know how to use the financial calculator. Reserve 4 hours for yourself at a time no one will disturb you and solve the mock. If you get above 70 in the mock, chances are that you will pass the final exam if not then you either didn’t follow the above rules or you didn’t have a quant background. Trust me 70 is not easy to get. The catch here is that the GARP mock exam is a medley of past exam questions. For this reason, you will already be familiar with most of the questions so you need to get something really high to be able to lift up your confidence.
Another thing to note is that the FRM exam is really stashed with a lot of topics to study. One month is not really advisable to cover all the topics unless you had no other choice like in my case.
Good luck and watch out for my piece for the broke guys like me.
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Risk mgmt. Is now a days mostly controlled by technology tools.
Data anaylatics, knowledge of Python etc. Is required for gaining important hands on experience.
Jobs in IT related field demands certification like oracle. If I am from non-IT field , which verification will help me to get the entry and help in risk related fields.
Or should Go for a 2 years course and not to adopt short cut {tedious too in short time } like certification. ?
I could find APTECH ACE centres for oracle certification.
Risk mgmt. Is now a days mostly controlled by technology tools.
Data anaylatics, knowledge of Python etc. Is required for gaining important hands on experience.
Jobs in IT related field demands certification like oracle. If I am from non-IT field , which verification will help me to get the entry and help in risk related fields.
Or should Go for a 2 years course and not to adopt short cut {tedious too in short time } like certification. ?
I could find APTECH ACE centres for oracle certification.
Risk Management is a broad arena, certification / course would depend on your interest area
CRISIL, ICAI & many agencies conduct training programs
ICAI has Forex & Risk Management course which runs over weeks
Now from which perspective you are looking at Risk Mgmt that would drive the suggested course
Crisil will be credit risk and theory plus some tools.
However, the data analystics, data mining and creating risk models is a vast field. I want to have some skills in that areas{ related to BFSI sector.}
Job examples for juniors
Candidate must have either of strong Risk or Credit or Ops background with excellence in working on large database and MS Excel
SPSS Statistics is a software package used for logical batched and non-batched statistical analysis. Long produced by SPSS Inc., it was acquired by IBM in 2009. The current versions (2015) are officially named IBM SPSS Statistics
SPSS desirable
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The average cost basis method
The average cost basis method is a system of calculating the cost basis on mutual fund positions held in a taxable account to determine the profit or loss on them. The average cost basis method adds up the cost basis for the entire position in a specific mutual fund and divides it by the total number of fund shares owned to arrive at an average cost per share. The average cost is then compared with the price at which the fund shares were sold to determine gains or losses. The average cost basis is one of three methods that the IRS allows investors to use to arrive at the cost of their mutual fund holdings acquired before Jan. 1, 2012.
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@Alpha.Barood
Who is the girl in the 3rd gif??
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Not much idea, ?
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Why u posted beauty in books library ?
World Leaders Gathering for ASEAN: Here is What You need to Know
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