Grinold & Kahn have been true pioneers in both the development and appli- cation of science and quantitative techniques in investing, and their work has been foundational to the tremendous success of many of the investment strat- egies at Barclays Global Investors and, later, BlackRock. Advances in Active Portfolio Management is an outstanding resource of insights and advances that can greatly benefit any investor in today's complex and increasingly efficient markets.--Blake Grossman, former CEO of Barclays Global Investors and Vice Chairman of BlackRock.Richard Grinold and Ronald Kahn's Active Portfolio Management has become a bible for active quant managers since its publication in 1995. Now, Advances in Active Portfolio Management brings readers up to date on critical issues--the estimation of expected return and risk in a dynamic envi- ronment, the effective implementation of insights, and accurate assessment of portfolio performance. Along the way, it addresses contemporary devel- opments, including the role of active management in a world of smart beta and factor investing, the increased use of leverage and its effects on portfolio risk, and the importance of assessing crowding. Grinold and Kahn continue to advance the theory and practice of quantitative investing.--Bruce I. Jacobs, Co-chief Investment Officer and Co-director of Research, Jacobs Levy Equity ManagementSuccessful portfolio management requires a framework for understanding the elements that matter the most, how they interact, and how to best make the requisite trade-offs. In this book, the authors build on their prior ground- breaking work to advance our intuition about (1) the dynamic aspects of active portfolio management--where signals, opportunities, and risks evolve over time; (2) the use and misuse of diversification and leverage in portfolio construction--and especially the implications for the management of tail risks; (3) the importance of placing one's own approach in the context of what other market participants are doing; and (4) understanding the nuances of how fees impact portfolio performance. This is an important book for anyone concerned with alpha generation, risk assessment, and portfo- lio management at a time when practitioner sophistication is considerably advanced, much of it because of the work of Grinold and Kahn.--André Perold, Co-Founder, Managing Partner, and CIO of HighVista Strategies and the George Gund Professor of Finance and Banking, Emeritus at Harvard Business School If a sequel could ever outshine the original, Advances in Active Portfolio Management threatens to do just that. Building on their earlier masterpiece, Grinold and Kahn offer fresh insights into the central problems in invest- ing and provide solutions to many new ones. By taking on fully the dynamic nature of active management with all its real-world complexity, the authors show how their framework can be adapted to meet new needs. Written pri- marily for asset managers, it is fruitful reading for asset owners too, provided one is willing to navigate through the evolving chain of notation!--Cheng Chih Sung, CEO of Avanda Investment Management and advisor to multiple sovereign investors in Norway, Singapore, and ThailandRichard Grinold has been a leading authority on quantitative active man- agement for decades. With active management evolving and becoming more systematic, this latest book by renowned authors Grinold and Kahn is an excellent resource for active managers. It provides insight into applications of modern investment techniques and the changing dynamics in the pursuit of alpha.--Morry Waked, Managing Director and Chief Investment Officer, Vinva Investment Management, formerGlobal Chief Investment Officer, Active Equities, Barclays Global Investors (BGI/BlackRock)Grinold and Kahn's Advances in Active Portfolio Management is the Bible for professional investment managers who fight in chaotic markets to squeeze alpha out of diverse investment opportunities. Based on research and practice in quantitative asset management over decades by the authors, this book turns art of investing into science, skills into technology, and intu- itions into systematic thought process with mathematical reasoning. The essential insights for portfolio managers are neatly organized and presented in this book.--Katsunari Yamaguchi, CFA, Chairman, Ibbotson Associates Japan, Inc.