Khia Kurtenbach

Hudson River Trading (HRT), a multi-asset class Quant Trading firm is hiring for the role of Quant Researcher MFT at $175,000-$300,000 annual base salary and undisclosed bonus (check the job link at the bottom of the post). Here is an Interview question asked in their Quant role Interview Romeo and Juliet have a date at a given time, and each will arrive at the meeting place with a delay between 0 and 1 hour, with all pairs of delays being equally likely. The first to arrive will wait for 15 minutes and will leave if the other has not yet arrived. What is the probability that they will meet? Solution - Let the point (x,y) mean that Romeo arrives at x time, and Juliet arrives at y time. The sample space is the unit square since 0≤x,y≤1 Let A be the event that Romeo and Juliet meet, A is the subset of points (x,y) satisfying |x−y|≤0.25 and lying inside the unit square. If x≥y then x≤y+0.25⟹y≥x−0.25. If y≥x then y≤x+0.25 Thus event A consists of all points in the unit square satisfying y≥x−0.25 when x≥y and y≤x+0.25 when y≥x. Graphing this set of points and calculating its area (divided by the area of unit square = 1) will yield the answer 7/16 For more such questions along with their solutions, check out Quant Insider Stack. Here's the link to Quant Researcher job application - https://lnkd.in/gpc5sC6s Kickstart your Quant Interview Prep with Quant Insider. Check out Quant Insider Stack - https://lnkd.in/gcfdUEfg A Bundle of Interview Byte, Quantopia Library, and Quant Insider Project Handbook with Bonus Resources. ‘Interview Byte’ contains 1000+ Interview questions (https://lnkd.in/gkqcrrKf) Quantopia Library is the goldmine for building your domain knowledge and technical skills. (https://lnkd.in/geThBB4d) Quant Insider Project Handbook has 10 industry-oriented projects based on challenges and competitions conducted by Top HFTs and Hedge Funds. (https://lnkd.in/gWBEn78U) Quant Insider Career Catalyst is your guide to all interview prep tips, preparation roadmap and job application strategies (https://lnkd.in/gVhA4tNG) Checkout our Course on Machine Learning for Finance - https://lnkd.in/eyXnPRwz Use Coupon code - "EARLYBIRD20" for 20% off on the MLFin course For quant finance memes follow us on Instagram - Quant Insider (https://lnkd.in/gfjc4hBu)

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This is the best summary / decision tree for #directindexing, I've ever seen. One use case that's missing though, is the correction for concentrated positions, e.g. in the case of stock options of people working for large corporates. Another one is faith-based investing, since most ESG funds are not sufficiently covering that topic - Taber Johnson and Reid J. Steadman can tell you more!

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See the latest from SGA

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Jim Simons, a legendary hedge fund manager who inspired millions of young people like me to enter the field of quantitative trading, passed away on May 10, 2024, at the age of 86. I felt compelled to write something to commemorate the loss of such a significant figure, and so this article titled "Appreciation of the Beauty of Math Leads to Success in Quantitative Trading" was born. If you do not have a Medium membership, you can click the following friend link to read the article for free. https://lnkd.in/eWzKZfj4

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📊 Featured in this week's AI edition of Nightpixels: ChatGPT usage rates, LLMs vs. equity analysts, global data center pricing, and more View the full post with visuals on our site via the link! 📊 ChatGPT Usage by Country A survey by the Reuters Institute shows Denmark leading in ChatGPT usage, with the USA having the highest daily and weekly use. Interestingly, two-thirds of U.S. consumers haven't used ChatGPT yet, highlighting growth potential! 🌍🤖 📈 GPT vs. Human Analysts A study from the University of Chicago finds ChatGPT, with human prompts, outperforms human analysts in predicting earnings changes. While humans excel in contextual understanding, AI is rapidly improving, promising significant support for financial services. 💼📊 🏢 52% of Global Hyperscaler Load in the US The US holds 52% of global hyperscaler data center capacity, underscoring its dominance in the industry, driven by major public clouds and tech giants like Apple and Meta. 🌐💻 💵 Global Data Center Pricing A CBRE report shows data center pricing across global cities. Chicago and Northern Virginia offer lower prices, while Singapore and Santiago are higher due to supply constraints. 🌍📉 🖼️ Evolution of Text-to-Image Models Ark Invest’s 2024 Big Ideas report highlights advancements in text-to-image models from 2016 to 2023, transforming graphic design with improved quality and realism. 🎨🖌️ https://lnkd.in/eYFG22d4 #AI #ChatGPT #DataCenters #TechInnovation #GraphicDesign #InvestmentResearch #MachineLearning #ArtificialIntelligence #CloudComputing #FinancialTechnology #DeepLearning #PredictiveAnalytics #GlobalTrends #BusinessInsights #TechTrends

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After a surge in performance and frothy valuations, US equities are prone to a correction – especially considering current inflation prints, rate cut uncertainty, and Mag 7 (or 6, 5, 4) dominance.   Downside risk is arguably higher than its upside counterpart at this juncture. We believe now to be a good time to bolster portfolios with defensives. Consider Telecoms, a low-beta defensive play (Chart) that has lagged the market for a while.   Tactically, Telecoms is a buy. It is oversold and undervalued. Profits are also returning amid improving cash flow and capital discipline. And on a relative basis, its time to shine may be just around the corner.   To find out more on Telecoms as a low-beta play and 5G industry trends, please request access to the full report here: https://lnkd.in/ebUAihBW BCA Research

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📈 April Performance Update for Hedge Funds As we closed out April, several leading hedge funds demonstrated their adeptness at navigating a turbulent market landscape. Here’s how some of the top players are standing: - Citadel is off to a strong start this year, already up nearly 8%. - Schonfeld impresses with a solid performance of nearly 7% returns. - Walleye has achieved a commendable 6.6%. - Point72 follows with a 6% increase. - Millennium is up by 5%. - Verition and Balyasny are both navigating the complexities well, each posting 4% gains. - ExodusPoint rounds out the list with a 2% increase, still positive in a challenging environment. Performance across the first four months of the year, suggests many will be looking for mid double digit returns come end of year. With rates at 5%, investors will want to see an additional 5/6% on top of that, in order to consider it a good return for taking the extra risk. 💡 What strategies do you think will dominate as we progress through the year? #HedgeFunds #MarketTrends #InvestmentStrategy #QuantitativeTrading #FinancialMarkets https://lnkd.in/dx4hR3zZ

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The Cboe wants to ‘debunk’ some 0DTE myths Zero-problem options? Mitch Bollinger, CFA, CAIA But Cboe is tying itself into knots attempting to show that 0DTEs are some kind of sober risk management tool. They’re not. They’re lottery tickets on financial market outcomes. People like to gamble, and other people like to make markets in those bets. And net-net the winners are not the gamblers but the casino. As the dominant US options exchange the Cboe has better data on the phenomenon than other players. For example, based on trade sizes, complexity and frequency it estimates that financial institutions (probably trading firms and hedge funds) account for 60-70 per cent of 0DTE trading. In other words, this is not purely the YOLO retail trading community. While retail investors benefit from significant price improvements in the form of lower effective spreads, they experience large losses on average: between February 2021 and September 2023, retail investors lost $241,000 on an average day; since the introduction of a daily expiration calendar in May of 2022, this number has grown to average losses of $350,000 per day.

Here’s 1 reason why Citadel outperforms markets: 👇 They use pairs trading to capitalise on asset relationships. Pairs trading is a sophisticated, market-neutral strategy that focuses on the relationship between selected assets rather than the overall market direction. Let's break it down: 1. Identify correlated pairs (e.g., AAVE-USD and Citigroup) 2. Calculate Z-scores to spot divergences 3. Trade the spread, going long the undervalued asset and short the overvalued one Sounds simple, right? But here's the catch: proper implementation requires rigorous statistical analysis and risk management. In a recent backtest on the pair mentioned, this approach yielded a 100% paper return over two years, outperforming the S&P 500's 10% gain. However, it also experienced a 50% drawdown. The high variance I saw, highlights the strategy's volatility - likely from the crypto. While the potential is promising, we must factor in nuanced, real-world challenges: 1. Transaction costs 2. Non-stationarity risks in asset correlations 3. Cointegration stability What are your thoughts on the viability of this strategy in the current market landscape? Have you executed similar strategies? After delving into all this, my conclusion is simple - In a world where alpha is increasingly elusive, pairs trading offers a unique edge. It's not just about picking winners; it's about exploiting statistical relationships. They’re omnipresent. #quantitativeanalysis #assetmanagement #hedgefund

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Why did I decide to graduate from Georgia Tech in 2 years and join a systematic trading firm? If you asked me 5 years ago where I thought I would be, I would certainly not say at a start-up in Miami. I might not have even known about the quantitative finance industry back then. Yet, here I am, entirely grateful for the opportunities I have taken. When asked what made me take the leap of faith, it boils down to these three reasons: 1. Learning From many conversations I've had with people who pursued further education, majority mentioned that they wished to have practical experience instead. I agree. I always found the fast-paced and well funded environment of the quant industry stimulating for learning. Building the trading system for one of these firms from the ground up in a start-up environment, however, teaches intricacies that are harder to learn elsewhere. This has been true for me as I have learned more than I expected in the past year while finding new areas to explore every day. It is especially inspiring to put what I have learned into practice and seeing the results live. 2. Impact Being at a firm that is expanding and reaching new horizons naturally means more chances to make an impact. Many team members, regardless of experience, have made impressive contributions to the infrastructure in a short period and have taken ownership of major projects. However, at the big firms, you would be asked to “specialize” and will be stuck in that niche for quite a bit. During my time here, I created many solutions from scratch, some of which have gone beyond the assigned scope and had significant impact on production. 3. Team Our team is talented and consists of people who have worked or had offers at many of the top quant firms and international medalists. There is always something new I learn from the team and everyone is supportive. This environment has helped me bring out the best version of myself more times than I can count. We always prioritize helping one another be successful and working towards common goals. How has it been so far? Phenomenal. It has been remarkable to see the company grow from not even trading to being a leader among systematic crypto firms. Our momentum has not stopped, and we continue to grow faster than ever. What excites me the most is our continuous effort to invest in the long run which makes us even more optimistic about what the future holds. Our team is currently looking for quant developers, quant researchers, and platform engineers for our Miami and Singapore offices. We are looking for hardworking, passionate, and curious minds. Typically, our candidates tend to be people with a programming or statistics background, but in general, we are looking for great problem solvers. We offer competitive compensation on par with the best in the field. If you are interested or know someone who might be, please reach out to me via LinkedIn. #quant #hiring #trading #crypto #developer #researcher

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Hello LinkedIn! I am here to share my most recently posted article for With Intelligence, and in this piece, I discuss ultrashort bond ETF flows in May and how Janus Henderson Investors led the category with its Janus Henderson AAA CLO ETF. I encourage you to check it out! Read More: https://lnkd.in/g4QJn8jh #WithIntelligence #NoBadDays #ETFs

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This post got a lot more comments & engagement then I would have imagined. One thing is clear to me, the recruiting, interview, and job hunting process are all broken. Lots of good, but a ton of things we can make more efficient. From the job hunting side, everyone should have an agent. In the world of AI, an AI agent that helps you hunt for jobs, apply for jobs, prepare for interviews, and negotiate your pay package. From the job recruiting side, we should have better tools, and an easier way to find the right candidates no matter what their backgrounds are. Ribbon has started this process with Recruit AI and their phone screening product I think is a real game changer. Make phone screens more efficient for both sides of the interview process. Give the hiring team a transcript, summary, insights, and allow the candidates to do their phone screen on their time. 24/7! If you are hiring, it's worth take 15-20mins and doing a demo with Dave Vu. If you are investing in and around application layer AI, check out what the team has Ribbon has done over the last 18 months. Lots of product 🚢 & a strong team based in Toronto.

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Here’s a concise summary of the recent developments related to Nvidia (NASDAQ: NVDA): Price Target Increases: Analysts at Baird raised their price target for Nvidia stock from $1,050 to $1,200, maintaining an Outperform rating. Stifel increased their price target for Buy-rated and Top Pick Nvidia to $1,085 from $910. Barclays, while maintaining a Neutral rating, raised its target for Nvidia shares to $1,100 from $850. Positive Outlook: Analysts expect strong results and a positive outlook as the AI infrastructure investment cycle continues. Barclays notes signs pointing to another revision higher, with potential upside of over $1 billion in April and $2 billion in July. Morgan Stanley also anticipates similar positive trends in Nvidia’s revenue guidance for the upcoming quarter. These developments reflect the continued strength in AI-related demand for Nvidia.

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I’m currently participating in the Mountaintop Summer Experience at Lehigh University, where I am focused on applying advanced AI to financial data analysis. This project involves enhancing the categorization and predictive accuracy of SEC Form 8-K filings using large language models. Key aspects of the project include: • Developing a detailed categorization system for financial events to improve data extraction techniques. • Enhancing predictive models with AI, specifically through fine-tuning large language models, to better forecast market impacts from corporate events reported in 8-K filings. The skills and insights I’m gaining are directly applicable to quantitative analysis and asset management, areas where precision and advanced analytical capabilities are crucial. This experience is preparing me to tackle complex financial challenges and contribute effectively within quantitative and machine learning-focused teams in the finance sector. I am grateful for the guidance from my advisor Patrick Zoro, the collaborative spirit of my co-lead Nicholas Wagner and the help of Christopher Toh , Zijun Xia. I am excited about the potential of our work to advance the integration of AI in financial analysis. #LehighUniversity #MachineLearning #QuantitativeFinance #AssetManagement #AIInFinance

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A great point as to the who is the success of your Firm based on. For most advisors they understand this. Most product creators fail to see that the client is not a distribution channel it is a consumer. Advice however is like the kids in the back seat being driven by Mum or Dad.  Never knowing when they will get there or if in fact the parents a lost.  The parents much prefer it if the kids have a "sleep". Product creators don't understand your clients and don't understand the value you bring to them.  That is why the products themselves are not about client outcomes but about maximising opportunity in a distribution channel.  Simply look at dispersion in real risk adjusted terms in investment products as an example of the  way product providers discuss solving the unadvised issue.  Everything is about scale not outcomes for the consumer. #financialadvice #financialadvisors #superannuation

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We published our Hedge Fund Trend Monitor and Mutual Fundamentals reports last week, which analyzed $6.1 trillion of equity positions at the start of 1Q 2024. Hedge funds and mutual funds have boosted exposures to equities this year, with hedge fund net leverage rising near its highest level over the past year and mutual fund cash balances dropping to record lows. In addition to higher equity exposures, funds have also begun to raise their exposures to pockets of the market that represent the next phases of the AI trade. In particular, both hedge funds and mutual funds have lifted exposures to Utilities. Among hedge fund and mutual funds’ favorite stocks, there were 7 “shared favorites”: DHR, FI, KKR, MA, UBER, V, and VRT.

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Interview Questions I have been asked as a Q-Quant in Derivatives Pricing roles at the Top sell side firms If you're wondering what a Q-Quant is, let's understand that first! Q-Quants are the sell side Quants who mainly work on pricing of derivatives and new products. Q-quants are concered with relative valuation and making sure that their pricing shemes are consistent with exchange traded products that are observed in the market. Here's a list of interview questions including technical, analytical, market awareness, behavioral and situational questions : 1. Walk me through the pricing of a European vanilla call option within the Black-Scholes framework. Now, explain the concept of the option Greeks: delta, gamma, vega, theta. How would you use these Greeks to manage the risk of a portfolio? 2. The price of a stock follows a geometric Brownian motion. How would you derive the partial differential equation satisfied by the price of a derivative of this stock? Can you offer a brief intuitive explanation of Ito's Lemma? 3. You're presented with a real-world volatility surface for an FX pair. Discuss the challenges involved in calibrating a model to this surface. What factors would you consider to choose a suitable model, and what trade-offs might you need to make? 4. Describe Monte Carlo simulation and its application in option pricing. How would you ensure the efficiency and accuracy of your simulations, especially when dealing with complex derivatives? 5. Discuss a recent trend in the derivatives markets that you find interesting and the potential quantitative challenges it presents. 6. If you could create a new, innovative exotic derivative, what would it be and what problem would you be trying to solve with it? Consider the potential market need for such a product. 7. Identify a potential risk in the current market environment – it could be related to regulation, products, or volatility. How would you analyze and quantify this risk from a derivatives quant perspective? 8. Describe a project where you encountered a significant challenge in your quantitative work. How did you identify the problem? What approach did you take to resolve it, and was it successful? We are conducting a Master Class on "Cracking a career as a Quant, a Quant Developer or a Strat" with Andrey Chirikhin who has more than 20+ years of experience working across different roles in Quantitative Finance. He will be talking about the following - Cracking the first quant role across the Buy side, sell side, Fintech, and Financial consulting. - How to build a long-term career and grow as a Quant Professional - The inside of the Quant Industry across different roles. - Required skill sets (hard and soft skills) - Date - 23rd June 2024 (Sunday) Time - 9:00 PM IST Register now to take advantage of the Early bird offer, use coupon code EarlyBirdQI TO GET 20% OFF Registration Link - https://lnkd.in/gEvN7Aw5

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