Inside the Black Box




Barnes & Noble



Peter Muller, Founder, PDT Partners: “Rishi provides a comprehensive overview of quantitative investing that should prove useful both to those allocating money to quant strategies and those interested in becoming quants themselves. Rishi’s experience as a well-respected quant Fund of Funds manager and his solid relationships with many practitioners provide ample useful material for his work.”

Aleksander Weiler, CFA, Senior Portfolio Manager, Public Market Investments, Canada Pension Plan Investment Board: “Quantitative trading, like all investment strategies, get more complex yet more interesting the deeper you dig into it. Rishi deftly peels back the layers, walking readers through each building block and their combination, then providing useful chapters on evaluating model-based approaches and finally a new section surveying high-frequency trading. Anyone approaching the space will learn something from this clear, thorough and readable book.”

Craig Dandurand, Portfolio Manager - Absolute Return Strategies, California Public Employees' Retirement System (CalPERS):
“Rishi Narang breaks down the complexities of quantitative investing into straightforward concepts that are accessible to a wide audience of investors, not just “math types.” But “Inside the Black Box” does more than that – it provides a valuable framework for assessing any investment strategy. It’s well worth reading regardless of experience level or numerical acumen.”

Steve Evans, Managing Director of Quantitative Trading, Tudor Investment Corporation:
“Rishi continues to demystify even more quantitative trading areas in this excellent new edition. Significant updates include several new chapters that shine much needed light on high speed and high frequency trading. This book continues to be a must-read for anyone interested in quantitative trading.”

Blair Hull, former founder of Hull Trading Co., and founder of Ketchum Trading:
“In Inside the Black Box: The Simple Truth About Quantitative Trading, Rishi Narang demystifies quantitative trading. His explanation and classification of alpha will enlighten even a seasoned veteran.”

Ross Garon, Managing Director, Quantitative Strategies, SAC Capital Advisors, LP: "In this updated edition, Rishi again provides an insightful taxonomy of a wide range of systematic trading strategies in liquid instruments. Without the extensive use of complex formulae, this book offers intutitive explanations of some of the choices faced by quants in constructing trading systems, and is a valuable read for investors and quantitative trading practitioners alike."

Daren Smith, CFA, CAIA, FSA, Managing Director, Manager Selection & Portfolio Construction, University of Toronto Asset Management:
"Rishi takes a complicated subject and distills it down to its essentials using non-technical language and numerous concrete examples to bring concepts alive. Inside the Black Box provides readers with a valuable framework to understand the various components of quant strategies and insights on how to evaluate and interview quant managers. Inside the Black Box is a useful reference guide for any institutional allocator to quant strategies.”

Harold de Boer, CEO, Transtrend:
"If a car were a black box, Rishi would be the gentle voice of the navigation system. Not the one driving, but if you want to know where everyone is going: just listen."

Shakil Ahmed, Ph.D., Global Head of Market Making, Citi Equities:
“Rishi presents a thorough overview of quant trading in an easy to read format, free of much of the hype and hysteria that has recently surrounded computerized trading. The book clearly categorizes the different types of strategies, explaining in plain English the basic ideas behind how and when they work. Most importantly, it dispels the popular notion that all quants are the same, exposing the diversity of the types of skills and thinking that are involved in quant trading and related disciplines. An excellent read for anyone who wants to understand what the field is all about.”

Galen Burghardt, Director of Research, Newedge:
“To look at the man, you would never know that Rishi could write so clearly and effectively about something as complex as quantitative trading and investment. But he does and does it brilliantly. And, even if you already own the first edition, you should buy this one, too. The new material on high speed trading is worth the price of admission, and you will have a chance, especially in Chapter 16, to see Rishi at his incisive and high spirited best. If you don’t laugh out loud, you have no soul.”

David DeMers, Portfolio Manager, SAC Capital Advisors, LP:
“Quant managers will find their meetings with investors to be smoother if the investors have read this book. And even more so if the manager him or herself has read and understood it.”

Pankaj N. Patel, Global Head of Quantitative Equity Research, Credit Suisse:
“In this second edition of Inside the Black Box Rishi highlights role of quant trading in recent financial crises with clear language and without using any complex equations. In chapter 11 he addresses common quant myths. He leads us effortlessly through the quant trading processes and makes it very easy to comprehend, as he himself is a quant trader.”