Quantamental managers combine quantitative models with fundamental judgment.

Heavy tails mean extreme returns occur less frequently than predicted.

Volatility clustering means volatility is constant.

Strategic allocation typically emphasizes discipline and stability.

Alternative investments may provide diversification benefits.

Alternative investments always have high liquidity.

CVaR measures expected losses beyond VaR.

ESG investing attempts to incorporate nonfinancial risks.

Passive managers attempt to outperform benchmarks through security selection.

Lognormal price models allow negative prices.