Blog Posts

The Feynman-Kac formula is a result in the theory of stochastic processes and partial differential equations (PDEs). It provides a link between parabolic partial differential equations and stochastic differential equations (SDEs). Essentially, the Feynman-Kac formula expresses the solution to certain PDEs in terms of expectations of functionals of stochastic processes. While originally for math and […]

In quantitative finance, professionals often categorize models and methodologies into two main buckets: Q World and P World. These classifications represent two distinct approaches to quant modeling. They each have their own unique set of assumptions, objectives, and applications.   Q World vs. P World (Quant Modeling) The “Q World,” or “Risk-Neutral World,” uses adjusted […]

If you’re interested in quantitative finance and trading, there are several leading academic journals that publish research in this area. Here are some of the most notable ones: Journal of Finance While this is a broad finance journal, it often includes articles related to quantitative finance and trading. Journal of Financial Economics This is another […]

Venture capital target schools often have a strong emphasis on entrepreneurship, technological innovation, and a connection to startup ecosystems. Unlike other finance target schools that may prioritize traditional finance or investment banking pathways, VC target schools typically foster environments conducive to startup culture. This might include resources such as incubators, entrepreneurship centers, and strong tech-focused […]

A private equity target school refers to an academic institution that private equity firms prioritize during their recruitment process. Such schools have a reputation for producing graduates who possess the analytical, financial, and leadership skills important for success in the private equity sector. In previous articles, we’ve looked at target schools for investment banking and […]

A hedge fund target school refers to a university or college that is specifically sought after by hedge funds during their recruitment process. These schools have earned a reputation for producing graduates who are well-prepared for careers in the hedge fund industry, both in terms of academic rigor and relevant skill sets. In a previous […]

Foreign investors, the Federal Reserve, and various entities like pensions, mutual funds, and financial institutions are major holders of US Treasury bonds. Individual households, the US government, and businesses also invest in these bonds due to the reliable income they provide and backing of the US government. Government-sponsored enterprises and passive funds, like ETFs, further […]

Hamada’s Equation is a financial tool that separates a company’s total risk into two distinct categories: business risk and financial risk. By understanding and analyzing these risks separately, investors and managers can make better-informed decisions. This equation also integrates elements from the famous Modigliani-Miller Theorem, providing a more comprehensive view of a firm’s risk profile. […]

3-asset and 4-asset portfolios can be used to simplify your approach. We look at various combinations to help you get an idea on how to structure such a portfolio. We are primarily focusing on risk-adjusted returns. While many may just want a stocks-heavy portfolio to try to maximize their returns, we take more of an […]

Elections can have significant power over financial markets, both immediately and over time. This sway is due to the potential economic consequences of the policy proposals from different candidates/parties and other factors we’ll cover. And financial markets and economies also have sway on election outcomes (i.e., an underperforming economy may increase the likelihood of a […]