This week, we speak with John Chisholm, co-CEO and co-CIO of Acadian Asset Management. Chisholm assumed the co-CEO role after serving as Acadian’s chief investment officer, Earlier in his career, John served as systems engineer at Draper Laboratories and as an analyst for the International Asset Management Department at the State Street Bank and Trust Company (now SSgA). He earned an M.S. in business and finance and a B.S. in engineering from MIT.
Acadian, one of the earliest quant shops, manages over $86 billion in assets.
Chisholm describes Acadian’s investment process and investment team, which is a quant driven approach, that uses factors in a variety of ways. Value, quality, trend, liquidity, capitalization and other elements are weighted in different types of weightings. They developed an optimizer to balance risk, reward and trading costs to create their portfolios. Acadian’s approach allows institutions to engineer risk and reduce trading costs while still obtaining the benefits of factors.
His favorite books are here; a transcript of our conversation is posted here.
You can stream/download the full conversation, including the podcast extras on iTunes, Bloomberg, Overcast, and Stitcher. Our earlier podcasts can all be found at iTunes, Stitcher, Overcast, and Bloomberg.
Next week, we speak with Matthew W. Granade, Chief Market Intelligence Officer and a Managing Director at Point72 Asset Management.
Liar’s Poker by Michael Lewis
The Fifth Risk by Michael Lewis
Revelation Space by Reynolds Alastair
Ringworld by Larry Niven
The Mote in God’s Eye by Larry Niven
