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The Intertek Group partners have (co-)authored articles and books on various aspects of advanced modeling techniques. Selected titles are listed below.

 

Books & Monographs

Challenges in Quantitative Equity Management, F.J. Fabozzi, S.M. Focardi, and C. Jonas, (CFA Institute, 2008). Go to www.cfapubs.org/toc/rf/2008/2008/2 to order or download.

Robust Portfolio Optimization and Management, F.J. Fabozzi, P.N. Kolm, D.A. Pachamanova, and S.M. Focardi (Wiley, 2007).

Financial Econometrics – From Basics to Advanced Modeling Techniques, S.T. Rachev, S. Mittnik, F.J. Fabozzi, S.M. Focardi, and T. Jasic (Wiley, 2007).

Trends in Quantitative Finance, F.J. Fabozzi, S.M. Focardi, and P.N. Kolm, (CFA Institute monograph, 2006). Review

Financial Modeling of the Equity Market: From CAPM to Cointegration, F.J. Fabozzi, S.M. Focardi, and P.N. Kolm (Wiley, 2006). Review

The Mathematics of Financial Modeling and Asset Management, S.M. Focardi and F.J. Fabozzi (Wiley, 2004). Review

Risk Management: Framework, Methods and Practice, S. Focardi and C. Jonas (Frank J. Fabozzi Associates, 1998).

Modeling the Market: New Theories and Techniques, S. Focardi and C. Jonas (Frank J. Fabozzi Associates, 1997).

 

Book Reviews - Financial Modeling of the Equity Market: From CAPM to Cointegration

In naming the book one of the Top 10 new books in financial engineering and risk management for 2006:

“The book provides an excellent overview of the models and processes used for measuring equity risk. [It] starts with a review of Markowicz’s 1952 paper on portfolio selection, before covering modern advances that have extended Modern Portfolio Theory. Later chapters move into equity price and index modeling, to modeling techniques for solving resultant equation. This book represents an excellent summary of the methods in place within equity modeling, and anybody wishing to understand this market could do much worse than start with this text.”

Richard Norgate, Financial Engineering News, September/October 2006

 

"The strength of this text is in the ability of the writers (all highly qualified financial experts with impeccable mathematical and economic backgrounds) to convey complicated and layered data in a clear-minded format. …. [T]he authors do a laudable job in capturing their subject, with inclusion of the most up-to-date information as related to equity portfolio models and single return analysis. [They] have gone to great lengths to ‘personalize’ this information,... augmenting their treatise with real-business-world examples/scenarios that serve to re-enforce key points and premises within the process.... In short, this book will serve the professional office and the cold glare of the university classroom with equal precision."

Frank Aiello, The Electric Review

Book Reviews - Trends in Quantitative Finance

This remarkable work has the highest importance for investors. I was most impressed with the authors' skill in dealing with complex matters in such a lucid manner. We can all be grateful to Fabozzi, Focardi, and Kolm for their contribution to our understanding of quantitative finance."

Peter L. Bernstein, Author of Capital Ideas: The Improbable Origins of Modern Wall Street

and Consulting Editor of The Journal of Portfolio Management.

 

Book Reviews - The Mathematics of Financial Modeling and Asset Management

In naming the book one of the Top 3 new books in financial engineering and risk management for 2005:

“I strongly recommend this [book].... The early chapters ... provide an introduction to financial markets and a summary of the milestones in financial modeling. The main part of this book is then a series of chapters covering the core mathematical areas useful to financial engineering, covering the basics of calculus, linear algebra and probability theory before moving on to stochastic differential equations, fat tails, continuous time models and everything else in between. If I’d had this book available a few years ago, it would have helped me start a career in financial engineering.

Richard Norgate, Financial Engineering News, 6 September 2005

 

Selected Articles

“The Reasonable Effectiveness of Mathematics in Economics” Sergio Focardi and Frank J. Fabozzi, Spring 2009 The American Economist.

“Considerations on the Challenges in Quantitative Equity Management”, Frank J. Fabozzi, Sergio M. Focardi, and Caroline L. Jonas, Quantitative Finance, Volume 8, Issue 7, 2008, Pages 649 – 665.

“Black Swans and White Eagles: On Mathematics and Finance,” Sergio Focardi and Frank J. Fabozzi, Mathematical Methods in Operations Research, published online 5 September 2008.

“Robust Portfolio Optimization,” Frank J. Fabozzi, Petter N. Kolm, Dessislava A. Pachamanova, and Sergio M. Focardi, Journal of Portfolio Management (Spring 2007), pp. 40-48.

“Trends in Quantitative Equity Management: Survey Results,” Frank J. Fabozzi, Sergio M. Focardi, and Caroline Jonas, Quantitative Finance Volume 7, No. 2 (April 2007), pp. 115-122.

“How Do Conflicting Theories About Financial Markets Coexist?” Wesley Phoa, Sergio Focardi, Frank J. Fabozzi, Journal of Post Keynesian Economics, Vol.29, No. 4 (Summer 2007), pp. 699-701.

“Incorporating Trading Strategies in the Black-Litterman Framework,” Frank J. Fabozzi, Sergio M. Focardi, and Petter N. Kolm, Journal of Trading (Spring 2006), pp. 28-37.

A Simple Framework for Time Diversification, Frank J. Fabozzi, Sergio M. Focardi, and Petter N. Kolm, Journal of Investing, (Fall 2006), pp. 8-18.

Implementable Quantitative Research, Frank J. Fabozzi, Sergio M. Focardi, and K.C. Ma, The Journal of Alternative Investments, Fall 2005.

A Methodology for Index Tracking Based on Time-Series Clustering, Sergio M. Focardi and Frank J. Fabozzi, Quantitative Finance Vol 4, 2004.

“Market Experience with Modeling for Defined-Benefit Pension Funds : Evidence from Four Countries,” Frank J. Fabozzi, Sergio M. Focardi and Caroline Jonas, forthcoming in Journal of Pension Economics, vol 4, issue 3, November 2005.

“An Autoregressive Conditional Duration Model of Credit-Risk Contagion,” Sergio M. Focardi and Frank J. Fabozzi, The Journal of Risk Finance, Vol 6, No. 3, 2005.

“New Kids on the Block: Trends in Quantitative Finance and Their Impact on Investment Management,” Sergio M. Focardi, Petter N. Kolm, and Frank J. Fabozzi, Journal of Portfolio Management, Special Anniversary Issue, Fall 2004.

“A Percolation Approach to Modeling Credit Loss Distribution Under Contagion,” Sergio M. Focardi and Frank J. Fabozzi, The Journal of Risk, Vol.7, No.1, Fall 2004.

“Trends in Quantitative Asset Management in Europe,” Frank J. Fabozzi, Sergio M. Focardi, and Caroline L. Jonas, Journal of Portfolio Management, Special European Issue, Summer 2004.

Fat Tails, Scaling, and Stable Laws: A Critical Look at Modeling Extremal Events in Financial Phenomena, Sergio M. Focardi and Frank J. Fabozzi, The Journal of Risk Finance, Vol 5, N 1, Fall 2003.

Self-organization and Market Crashes, Sergio Focardi, Silvano Cincotti and Michele Marchesi, Journal of Economic Behavior & Organization, Volume 49/2 pp. 241-267, 2002.

Agent-based Simulation of a Financial Market, Marco Raberto, Silvano Cincotti, Sergio Focardi and Michele Marchesi, Physica A, 2001.

A Stochastic Model of Software Maintenance and Its Implications on Extreme Programming Processes, Sergio Focardi, Michele Marchesi and Giancarlo Succi, Extreme Programming Examined, ed. G. Succi and M. Marchesi, Addison Wesley, New York, 2001.

Self-Organization in Global Stochastic Models of Production and Inventory Dynamics, Sergio Focardi and Michele Marchesi, Essays on Heterogeneity in Economics, ed. D. Delli Gatti, M. Gallegati and A.P. Kirman, Springer-Verlag, Berlin, 1999, updated 2000.

Business as Usual and Rare Events: The Odd Couple of Risk Management Coming Together, Sergio Focardi, Journal of Portfolio Management, 25th Anniversary Issue, May 1999.

A Seam of Knowledge: The Importance of Data Analysis in Firm-wide Financial Optimisation, Sergio Focardi, Risk Magazine, vol. 10, no. 8, August 1997.

From Equilibrium to Non-linear Dynamics in Investment Management, Sergio Focardi, Journal of Portfolio Management, Summer 1996.

The Technology of Data Mining, Karsten Decker and Sergio Focardi (CSCS-Swiss Scientific Computing Centre, Manno, Switzerland, March 1995). Available at www.cscs.ch.