Issue #226

December 6, 2023

This weeks book is "Causal Factor Investing" by Marcos M. López de Prado, his most recent work in quantitative finance. López de Prado introduces a unique approach by emphasizing causality, a factor often overlooked in traditional quantitative models. The book provides a refreshing perspective on financial markets, challenging conventional wisdom and offering a comprehensive guide to understanding and implementing causal factor investing.

What sets this book apart is its practicality. López de Prado not only delves into the theoretical underpinnings of causal factor investing but also provides real-world examples and case studies. This hands-on approach ensures that readers can not only grasp the concepts but also apply them in their own investment strategies. The author's writing style is both engaging and approachable, striking a balance between academic rigor and practical applicability.

In a landscape where financial strategies are constantly evolving, "Causal Factor Investing" stands out as a timely and relevant resource. López de Prado's expertise shines through, making this book essential for both seasoned professionals and those new to quantitative finance. It's a must-read for anyone serious about staying ahead in the dynamic world of investment, offering a thought-provoking and informative guide that will shape the future of quantitative finance.

Causal Factor Investing

1. llamafile is the new best way to run a LLM on your own computer [simonwillison.net]
2. 3 climate impacts the U.S. will see if warming goes beyond 1.5 degrees [npr.org]
3. LLM Visualization [bbycroft.net]
4. Generative AI in the Enterprise [oreilly.com]
5. Introducing a suite of AI language translation models that preserve expression and improve streaming [ai.meta.com]
6. Large Language Model Course [github.com/mlabonne]
7. What Is a Hessenberg Matrix? [nhigham.com]

• Paper Notebooks vs. Mobile Devices: Brain Activation Differences During Memory Retrieval (K. Umejima, T. Ibaraki, T. Yamazaki, K. L. Sakai)
• Human mobility networks reveal increased segregation in large cities (H. Nilforoshan, W. Looi, E. Pierson, B. Villanueva, N. Fishman, Y. Chen, J. Sholar, B. Redbird, D. Grusky, J. Leskovec)
• Phantom oscillations in principal component analysis (M. Shinn)
• Complex Quantum Networks: a Topical Review (J. Nokkala, J. Piilo, G. Bianconi)
• A Survey of Graph Meets Large Language Model: Progress and Future Directions (Y. Li, Z. Li, P. Wang, J. Li, X. Sun, H. Cheng, J. X. Yu)
• On Learning to Think: Algorithmic Information Theory for Novel Combinations of Reinforcement Learning Controllers and Recurrent Neural World Models (J. Schmidhuber)
• Have we built machines that think like people? (L. M. S. Buschoff, E. Akata, M. Bethge, E. Schulz)

The Exciting, Perilous Journey Toward AGI

December 6, 2023

​