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Related papers: Convergence of a Scholtes-type Regularization Meth…

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We extend the convergence analysis of the Scholtes-type regularization method for cardinality-constrained optimization problems. Its behavior is clarified in the vicinity of saddle points, and not just of minimizers as it has been done in…

Optimization and Control · Mathematics 2023-01-02 Sebastian Lammel , Vladimir Shikhman

We study a cardinality-constrained optimization problem with nonnegative variables in this paper. This problem is often encountered in practice. Firstly we study some properties on the optimal solutions of this optimization problem under…

Optimization and Control · Mathematics 2019-06-04 Zhongyi Jiang , Baiyi Wu , Qiying Hu

We consider nonlinear optimization problems with cardinality constraints. Based on a continuous reformulation we introduce second order necessary and sufficient optimality conditions. Under such a second order condition, we can guarantee…

Optimization and Control · Mathematics 2017-09-06 Max Bucher , Alexandra Schwartz

A cardinality-constrained portfolio caps the number of stocks to be traded across and within groups or sectors. These limitations arise from real-world scenarios faced by fund managers, who are constrained by transaction costs and client…

Optimization and Control · Mathematics 2018-10-26 Jize Zhang , Tim Leung , Aleksandr Aravkin

We survey optimization problems that involve the cardinality of variable vectors in constraints or the objective function. We provide a unified viewpoint on the general problem classes and models, and give concrete examples from diverse…

Optimization and Control · Mathematics 2022-08-09 Andreas M. Tillmann , Daniel Bienstock , Andrea Lodi , Alexandra Schwartz

We consider convex constrained optimization problems that also include a cardinality constraint. In general, optimization problems with cardinality constraints are difficult mathematical programs which are usually solved by global…

Optimization and Control · Mathematics 2022-09-08 Nataša Krejić , Evelin H. M. Krulikovski , Marcos Raydan

Switching-constrained optimization problems form a difficult class of mathematical programs since their feasible set is almost disconnected while standard constraint qualifications are likely to fail at several feasible points. That is why…

Optimization and Control · Mathematics 2018-09-10 Christian Kanzow , Patrick Mehlitz , Daniel Steck

This paper studies a distributionally robust portfolio optimization model with a cardinality constraint for limiting the number of invested assets. We formulate this model as a mixed-integer semidefinite optimization (MISDO) problem by…

Optimization and Control · Mathematics 2022-12-22 Ken Kobayashi , Yuichi Takano , Kazuhide Nakata

In this paper, we propose $\ell_p$-norm regularized models to seek near-optimal sparse portfolios. These sparse solutions reduce the complexity of portfolio implementation and management. Theoretical results are established to guarantee the…

Portfolio Management · Quantitative Finance 2013-12-24 Caihua Chen , Xindan Li , Caleb Tolman , Suyang Wang , Yinyu Ye

In this paper we propose and discuss different 0-1 linear models in order to solve the cardinality constrained portfolio problem by using factor models. Factor models are used to build portfolios to track indexes, together with other…

Portfolio Management · Quantitative Finance 2020-03-19 Juan Francisco Monge

The cardinality-constrained mean-variance portfolio problem has garnered significant attention within contemporary finance due to its potential for achieving low risk while effectively managing risks and transaction costs. Instead of…

Optimization and Control · Mathematics 2024-07-15 Ahmad Mousavi , George Michailidis

In this paper we consider a generalization of the Markowitz's Mean-Variance model under linear transaction costs and cardinality constraints. The cardinality constraints are used to limit the number of assets in the optimal portfolio. The…

Computational Engineering, Finance, and Science · Computer Science 2014-04-15 Mahdi Moeini

In the practical business environment, portfolio managers often face business-driven requirements that limit the number of constituents in their tracking portfolio. A natural index tracking model is thus to minimize a tracking error measure…

Optimization and Control · Mathematics 2015-06-22 Fengmin Xu , Zhaosong Lu , Zongben Xu

When the lower-level optimal solution set-valued mapping of a bilevel optimization problem is not single-valued, we are faced with an ill-posed problem, which gives rise to the optimistic and pessimistic bilevel optimization problems, as…

Optimization and Control · Mathematics 2024-08-13 Imane Benchouk , Khadra Nachi , Alain Zemkoho

Portfolio optimization involves selecting asset weights to minimize a risk-reward objective, such as the portfolio variance in the classical minimum-variance framework. Sparse portfolio selection extends this by imposing a cardinality…

Machine Learning · Statistics 2025-05-16 Sarat Moka , Matias Quiroz , Vali Asimit , Samuel Muller

We model the cardinality-constrained portfolio problem using semidefinite matrices and investigate a relaxation using semidefinite programming. Experimental results show that this relaxation generates tight lower bounds and even achieves…

Optimization and Control · Mathematics 2024-02-08 Angelika Wiegele , Shudian Zhao

Regularization and interior point approaches offer valuable perspectives to address constrained nonlinear optimization problems in view of control applications. This paper discusses the interactions between these techniques and proposes an…

Optimization and Control · Mathematics 2022-10-31 Alberto De Marchi

We introduce a solution scheme for portfolio optimization problems with cardinality constraints. Typical portfolio optimization problems are extensions of the classical Markowitz mean-variance portfolio optimization model. We solve such…

Optimization and Control · Mathematics 2019-06-25 Lorenz M. Roebers , Aras Selvi , Juan C. Vera

The minimum sum-of-squares clustering (MSSC), or k-means type clustering, has been recently extended to exploit prior knowledge on the cardinality of each cluster. Such knowledge is used to increase performance as well as solution quality.…

Optimization and Control · Mathematics 2023-10-13 Veronica Piccialli , Antonio M. Sudoso

In this paper, we study a class of optimization problems, called Mathematical Programs with Cardinality Constraints (MPCaC). This kind of problem is generally difficult to deal with, because it involves a constraint that is not continuous…

Optimization and Control · Mathematics 2020-08-04 Evelin H. M. Krulikovski , Ademir A. Ribeiro , Mael Sachine
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