STRATEGIES

Systematic Active Equity

In our experience, many investors need higher returns than those they expect to achieve on indexed equity allocations. Simply increasing their exposure to higher risk strategies, however, may create unacceptable downside risk. Systematic active investment strategies, sometimes called quantitative strategies, may offer institutional investors a way to achieve their investment objectives alongside, or as a substation for, index and fundamental strategies.

 


Systematic active uses proprietary techniques in seeking to exploit fundamental insights in a disciplined and systematic way with the aim of delivering consistent, differentiated outperformance. In an age in which we are overloaded with information, the ability to process large amounts of data by using systematic, quantitative techniques can create a significant advantage. So can the ability to anticipate and interpret flows in a market that has been transformed by higher volumes and rapid trading.

As pioneers in managing systematic active equities, our expertise dates back to 1985*. Today, our equity capabilities cover the full geography of world markets and capitalizations, meaning clients can choose precisely the active exposure they require: from developed and emerging markets, to small and large cap stocks. We also offer a series of market neutral offerings that aim to deliver total returns uncorrelated with the market.

Why choose BlackRock?

An investment approach built on 30+ years of innovation*

From our early beginnings managing value-tilted portfolios, we believe that it is necessary to constantly review and evolve both our risk management practices and our investment processes in seeking to maintain an edge in our field. As part of our commitment to continuous innovation, we are harnessing the power of big data, searching for new answers to old questions and looking to combine existing insights in novel ways to seek sustained alpha for our clients across all market environments.

*including time within Barclays Global Investments and Wells Fargo Nikko Investment Advisors

Incorporating a human element

Systematic active is more than just a model, with each of our strategies driven by innovative technologies and guided by the human insight of a group of experienced investment professionals that have a diverse set of backgrounds spanning academia, data science finance and economics. Whether it’s conducting research into new alpha ideas, ensuring that models are fine tuned to the current market environment, or challenging the findings of our models, SAE investors and researchers play an integral role in the investment process. For our clients, that results in a robust process backed by approximately 80 dedicated investment professionals (as of 06/30/2018), supported by highly qualified researchers and strategists.

A wide range of strategies to help meet clients' needs

BlackRock offers a wide array of systematic active equity strategies, all of which seek to provide clients the benefit of differentiated alpha generation. They range from long-only and long/short strategies that employ alpha tilts to capture our research insights, to market neutral strategies that can help clients seeking diversification by seeking to generate returns with low correlations to traditional asset classes.