Chris Carrano – Factor Models, Institutional Insights, and Portfolio Diagnostics (S7E20)

Join Corey Hoffstein and Chris Carrano as they explore Chris's journey to his role at Venn by Two Sigma. They dive into risk analysis, factor-based investing, and the limitations of traditional asset class frameworks. Discover the adoption of factor analysis in institutional investing, focusing on parsimonious modeling and balancing robustness with interpretability. The discussion covers portfolio construction, surprises in diversification, transparency challenges, and analyzing private asset returns. Chris also shares insights into stress testing, scenario analysis, and translating diagnostics into strategies. Plus, a glimpse into his interest in Pokemon cards.