Articles & Papers

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The following articles and white papers demonstrate and describe our portfolio optimization systems, and the foundations of our mathematical programming algorithms.

Large-Scale Portfolio Optimization

Quadratic Programming for Large-Scale Portfolio Optimization, by Michael J. Best and Jivendra K. Kale, Financial Services Information Systems, Best Practices Series, pages 513-529, Jessica Keys, Editor, Auerbach, 2000.

Quadratic programming with transaction costs, by Michael J. Best and Jaroslava Hlouskova, Computers and Operations Research (Special Issue: Applications of OR in Finance), Vol. 35/1, pages 18-33, 2008.

An algorithm for portfolio optimization with variable transaction costs, Part 1: Theory, by Michael J. Best and Jaroslava Hlouskova, Journal of Optimization Theory and Applications, Vol. 135/3, pages 563-581, 2007.

An algorithm for portfolio optimization with variable transaction costs, Part 2: Computational analysis, by Michael J. Best and Jaroslava Hlouskova, Journal of Optimization Theory and Applications, Vol. 135/3, pages 531-547, 2007.

Portfolio Optimization Using the Quadratic Optimization System and Publicly Available Information on the WWW, by Jivendra Kale, Managerial Finance, Vol. 35/5, pages 439-450, 2009.

Power-Log
Optimization

Growth Optimization with Downside Protection: A New Paradigm for Portfolio Selection, by Jivendra Kale, The Journal of Behavioral Finance, Vol. 7/1, pages 29-42, 2006.

An algorithm for portfolio optimization with transaction costs, by Michael J. Best and Jaroslava Hlouskova, Management Science, Vol. 51/11, pages 1676-1688, 2005.

A Class of Accelerated Conjugate Direction Methods for Linearly Constrained Minimization Problems, by Michael J. Best and Klaus Ritter, Mathematics of Computation, Vol. 30/135, pages 478-504, 1976.

Growth Maximization and Downside Protection using Power-Log Utility Functions for Optimizing Portfolios with Derivatives, by Jivendra Kale, International Journal of Computer Applications in Technology, Vol. 34/4, pages 309-314, 2009.

Growth Optimal Asset Allocation Strategies with Downside Protection, by Jivendra K. Kale, Financial Services Information Systems, Best Practices Series, pages 497-511, Jessica Keys, Editor, Auerbach, 2000.

Factor Models

Assessing Industry Risk, by Jivendra K. Kale and Nils H. Hakansson, Journal of Investing, Winter 1991.