An innovative guide that identifies what distinguishes the best financial risk takers from the rest From 1987 to 1992 …, a small group of Wall Street quants invented an entirely new way of managing risk to maximize success: risk management … for risk-takers. This is the secret that lets tiny quantitative edges create hedge fund billionaires, and defines the …

Measuring and allocating risk properly are crucial for performance evaluation and internal capital allocation of … portfolios held by banks, insurance companies, investment funds and other entities subject to financial risk. We show that by … using coherent measures of risk it is impossible to allocate risk satisfying the natural requirements of (Solution) Core …