The Institute for Quantitative Research in Finance
From its inception in 1966, the Institute for Quantitative Research in Finance (Q Group) has provided a forum for investment professionals to advance the practice of global investment management by connecting investment professionals with rigorous research and ideas at the frontier of the industry.
In founding the Q Group in 1966, Dale Berman’s intention was to explore the application of “Modern Capital Market Theory (MPT)” as theorized by Harry Markowitz in his 1952 book. The Q Group began with 29 member firms interested in studying the applicability of Markowitz’ theory to the investment process. By joining together, this small cadre of firms felt that by working cooperatively, they would be able to find ways to improve the investment process. The original Board of Directors was comprised of seven individuals who were highly regarded by their institution and held a strong belief in disciplined investing.
Over Q Group’s history, $2 million in financial support has been provided to advance research in quantitative studies and applications. For almost 50 years the Q Group has played an active role in funding academic research. In the early days, Financial Research Centers were established at Dartmouth, Ohio State, Princeton and Stanford. To become more effective, the Q Group’s focus shifted to research of individual professors. Through these academic collaborations, the Q Group provided leadership and funding of a diverse list of projects, many of which have been published in numerous professional and academic journals. In 2014, Q’s funding of individual research projects was terminated in favor of a prize award for new working papers showing promise. The prize was named in honor of Jack Treynor who has, over the years, made major contributions to finance theory and continues to be an active participant in Q.