Searching for Signals: BlackRock’s Raffaele Savi on the Future of Systematic Investing

Bullish:

• $PRIVATES - BlackRock is actively developing systematic strategies for private markets and credit, viewing this as one of the most exciting growth areas that will become a big market over the next decade

  • “I think we'll see systematic in private. We're already doing a lot of work systematic in credit.”

    Raffaele·11:42
• $AI - AI will transform systematic investing by enabling longer time horizons and less liquid asset classes through scale, universality, and safety engineering capabilities

  • “I think what AI in this generation in the future architectures will do will sort of open the door for a systematic approach to investing in longer time horizon and in in less liquid asset class.”

    Raffaele·11:32
• $SYSTEMATIC - Systematic investing is expanding beyond traditional markets into equities, fixed income, and longer-duration assets, enabled by AI's ability to process non-traditional data sources

  • “I think where systematic is going is is going equities and fixed income, and is going for longer duration assets.”

    Raffaele·14:42

Bearish:

• $HIGHVOL - High volatility stocks that have been outperforming are likely near the end of their move, with technical signals indicating mean reversion ahead after causing significant losses to short positions

  • “I would say that the key feature is this sort of high vol names that that have been ripping. People have been losing money mostly on their short positions or underweight.”

    Raffaele·18:14