Giuseppe Paleologo - Multi-Manager Hedge Funds & Thinking Deeply About Simple Things (S7E11)

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In this episode, I speak with Giuseppe Paliologo or Gappy as he likes to be called. Currently on garden leave, GAPI has previously worked in risk and quantitative analytics at Citadel as head of enterprise risk at Millennium and most recently as head of risk management at HRT. We begin the conversation with a discussion as to what a quant researcher actually does at a multi manager hedge fund. As a semi support role to fundamental PMs, GAPI explains how portfolio manager coverage, factor hedging, and internal alpha capture can all work together to help maximize firm p and l. We then discussed

Well, thanks to you, Corey. I just wanted to say that I have been listening to your podcast for years years, so I feel like I already know you.

I appreciate that. So let's get started with just setting the table for folks who maybe haven't been following your meteoric rise to fame on Twitter, at least, with a bit of your background so people can know what your experience is and what you're bringing to the table here. My

name is Giuseppe Palaiologo. I go by the nickname Gappy, g a p p y. I have been in the industry for about 14 years. Before then, I was an applied mathematician working for IBM Research in Yorktown Heights. I transitioned into finance. 1st, I moved to Axiama, which is a factor model and optimization provider. I got called by a recruiter for Citadel, so I got hired by Citadel. I worked there twice. I worked at Millennium as head of enterprise risk, HRT as the first set of risk. In between, I was also a quantitative PM for a relatively small hedge fund. I did leave HRT in November of last year, a

Sort of like a Iceland, Greenland problem. You got the names backwards on the books. Having read both your first book as well as a draft of your second book, I cannot recommend them enough. To your point, advanced portfolio management is not going to be for the most advanced quant. It truly is for the fundamental portfolio manager, but it goes over some wonderful basics, and your new book does not shy away from the math. And I think quant practitioners will really enjoy it from, at least, the draft I read, and I'm sure it's been far improved from there. I look forward to picking up a copy and

I'll actually quote a co head of one of these firms without mentioning his name who once told me, Citadel is Singapore. It's centrally managed. It's very efficiently managed. Everything is clean and working. The