QUANTITATIVE RESEARCH
BY: MAHA KHAN PHILLIPS • PROFILES BY: STUART NEWMAN
I
nvesting in quants involves building institution and how they fi t in. In factors and the trades got over
and working with mathematical some places, quants can be a pure crowded to the point where people
models for securities. “Th is can be research function which is used to pulled the plug, and the factors were
anything from more fundamental based back up more traditional managers as all going in opposite directions. All
models to more technical models,” a reference frame for them. In a pure quant models are based on historical
explains Chris Williams, ASIP, director quantitative approach, the whole data, so we try to do sensible things
of quantitative equity investment for process is governed by the model,” like make sure we’re not shifting
DIAM International. Williams explains. things overly to any one particular
Analysts will approach models period or scenario.”
diff erently. Some will be top down, HERD MENTALITY To work in the area, a numerate
others will be bottom up. “Some Last year, many quantitative background is essential, whether it is in
quants do more tactical asset managers fared badly. Williams math, statistics, or engineering. “You
allocation, choosing which markets to believes that was because too many also need some level of IT skills, and
overweight and underweight. Others people were doing the same kind of preferably some basic level of
use classic stock selection models or thing. “A lot of people ended up programming, depending on your
screening. It depends on the using the same kind of investment role,” explains Williams.
Cg
TIN LAU
Title: Quantitative Analyst
Current employer: Swisscanto
Previous employers:
Mizuho International; JPMorgan;
Hewitt Associates
Are there certain skills you would consider useful for
University: Warwick University,
your job?
College of Law
People skills are vital. Technical ability, at this level, is assumed
Degrees: Masters Systems
up to a point, but further training, either on-the-job and/or
Engineering; Bar Vocational Course studying for professional qualifi cations, will bring one up to
Professional qualifi cations: speed in a reasonable amount of time. Therefore, the ability to
CFA Level I candidate; IMC; Barrister
work as part of a team, willingness to learn and to admit one’s
(Inner Temple); CIMA Certifi cate in
mistakes (then fi x them) will serve one best in the long-term.
Business Accountancy; CIMA Advanced
Diploma in Management Accountancy
How do you think the role you’re in now will change over time?
In future I will be able to enhance the work-fl ow processes and
What attracted you to this career path?
analytics, so the focus of the role is predominately on the
I was drawn to quantitative/research analyst because of the
strategic and tactic plays of funds. Eventually, I would like to
diversity of skills required. The role includes a balance between
manage my own portfolios and develop my trading skills further.
mathematics, programming and economics. It makes for a heady
and demanding blend of work. I like the international nature of the
Do you have advice for someone intending to pursue the same
work and the challenges that it offers.
career path?
I have not had the most conventional of career paths, though I
What are the major challenges you face in your position?
would say that being well read is the most important point. This
A key challenge is adapting to each investment desks’ style of
includes awareness of the macroeconomic context of the trading
trading. I am part of a very experienced and settled desk so I learn
environment and the position that you are going for, as well as
a lot from them whilst still making my own mark.
the latest theorems on trading and risk.
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