PT  - JOURNAL ARTICLE
AU  - Frank J. Fabozzi
AU  - Sergio M. Focardi
AU  - Caroline L. Jonas
TI  - Trends in Quantitative Asset Management in Europe
AID  - 10.3905/jpm.2004.125
DP  - 2004 Jul 31
TA  - The Journal of Portfolio Management
PG  - 125--132
VI  - 30
IP  - 4
4099  - https://pm-research.com/content/30/4/125.short
4100  - https://pm-research.com/content/30/4/125.full
AB  - This study of the use of financial modeling at European asset management firms is based on interviews at asset management firms in the Benelux countries, France, Germany, Italy, the Scandinavian countries, Switzerland, and the United Kingdom. Since the fall of the market from its peak in March 2000, there have been six major changes: 1) we have seen a sharp increase in the use of modeling and quantitative techniques; 2) the performance of models has improved, and market participants now have a better understanding of models and their limits; 3) there is a growing use of multiple models and of methods to handle them; 4) there is increased use of value-based models and of factors that measure market sentiment; 5) risk management has assumed a greater role, as the handling of extreme events has gained importance; and 6) uncertainty as to the macrotrends in financial markets remains high.