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Do you think there's a market for something in between Excel and raw code? I'm thinking of some sort of Excel/Rules/Code hybrid designed for large, complicated

Do you think there's a market for something in between Excel and raw code? I'm thinking of some sort of Excel/Rules/Code hybrid designed for large, complicated stuff. Good verification tools, multiple what-if analyses that could be run simultaneously, etc. I'm just trying to think through all the problems I've had when trying to use Excel for models even smaller (much!) and simpler than this one.

byrneseyeview 19y ago
I'd like to think so, and there probably is, but the issue with Excel is not technical superiority but market dominance. If there were some tool that could be gracefully upgraded to harder and harder problems, but that was designed for this kind of thing, it would be ideal. Excel is a teetering mountain of compromises and (bad) hacks. I have messed around with using Arc for something like this (my initial plan: a way to keep track of stock positions, but to treat arbitrage positions as a unit -- instead of "100 shares of XYZ, and -100 shares of ABC, which are merging next week in a 1:1 share swap," it would be "1 unit of XYZ/ABC merger.")
barry-cotter 19y ago
byrenesreview basically answered below where he said at least half of hedge funds and traders use Excel. Thing is, hedge funds, quants in general will be way more likely to use real modelling software than everybody else, so byrne's experience of them using anything but Excel is skewed. In I-banking, Private Equity, management consulting, the financial industry generally, Excel is king. If you look at BankersBall they have a tab for excel tricks. Dealmaven got bought for $14m recently, and their product (apart from the bootcamp, which obviously doesn't scale) was a financial modelling package, or rather, training in modelling, along with macros, shortcuts and a manual for Excel, as it's used in finance (really very good training in modelling, as you'd expect from a firm with a Wharton prof on board)
brent 19y ago
I'd be a bit shocked if people (particularly the more academic types) didn't use matlab or R. Anyone know if these two are prevalent in financial shops of various types?
- byrneseyeview 19y ago
  I have seen specs calling for Matlab, R, S+, and Mathematica. But my impression is that since the finished product is going to be in a high-performance, low-level language, they don't care what you do your rough-drafting in as long as the finished product is C++. Exception: Jane St. Capital uses Ocaml; one of their top execs is a Lisp fan who has been credited in pg essays.

byrneseyeview 19y ago

I'd like to think so, and there probably is, but the issue with Excel is not technical superiority but market dominance. If there were some tool that could be gracefully upgraded to harder and harder problems, but that was designed for this kind of thing, it would be ideal. Excel is a teetering mountain of compromises and (bad) hacks. I have messed around with using Arc for something like this (my initial plan: a way to keep track of stock positions, but to treat arbitrage positions as a unit -- instead of "100 shares of XYZ, and -100 shares of ABC, which are merging next week in a 1:1 share swap," it would be "1 unit of XYZ/ABC merger.")

barry-cotter 19y ago

byrenesreview basically answered below where he said at least half of hedge funds and traders use Excel. Thing is, hedge funds, quants in general will be way more likely to use real modelling software than everybody else, so byrne's experience of them using anything but Excel is skewed. In I-banking, Private Equity, management consulting, the financial industry generally, Excel is king. If you look at BankersBall they have a tab for excel tricks. Dealmaven got bought for $14m recently, and their product (apart from the bootcamp, which obviously doesn't scale) was a financial modelling package, or rather, training in modelling, along with macros, shortcuts and a manual for Excel, as it's used in finance (really very good training in modelling, as you'd expect from a firm with a Wharton prof on board)

brent 19y ago

I'd be a bit shocked if people (particularly the more academic types) didn't use matlab or R. Anyone know if these two are prevalent in financial shops of various types?

byrneseyeview 19y ago
I have seen specs calling for Matlab, R, S+, and Mathematica. But my impression is that since the finished product is going to be in a high-performance, low-level language, they don't care what you do your rough-drafting in as long as the finished product is C++. Exception: Jane St. Capital uses Ocaml; one of their top execs is a Lisp fan who has been credited in pg essays.