Active Equities

Systematic Active Equity

A cost-effective and risk-managed way to target above-market returns

Clients have more choices for targeting their investing goals today – and higher expectations for active managers. A differentiated outcome requires a differentiated approach.

Seeking an information edge – in pursuit of an alpha edge

In an age of information overload, the ability to process large amounts of data 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.

BlackRock’s Systematic Active Equity (SAE) team uses cutting-edge technology in systematically seeking to sniff out hard-to-find market inefficiencies while minimizing uncompensated risks. The goal: Outperform the market on a consistent basis, with a systematic, risk-managed approach to stock selection and at fees that do not erode returns.

We believe that better and more differentiated investment insights from new data and new techniques are becoming necessary conditions for investment success.

Jeff Shen
Co-Head of Systematic Active Equity

Benefits of a systematic approach in equities

Information advantage
Information advantage
Harness the superabundance of data, and the technology available to process it, to arrive at novel sources of equity return
Disciplined, systematic process
Disciplined, systematic process
Implement ideas across thousands of stocks daily through a rigorous, consistent and repeatable investment process
Robust risk management
Robust risk management
Employ proprietary tools and technology in seeking to manage risk and generate consistent results over the long term
Enhanced diversification and return potential
Enhanced diversification and return potential
A powerful complement to index and factor strategies, helping to enhance portfolio outcomes

History of innovation

SAE is a 34-year old investment platform* managing money in every investable market in the world. Discovering new market inefficiencies is key to success as they can disappear as quickly as they are found. We believe that an investment process underpinned by continual innovation is vital to our goal of delivering sustainable alpha to our clients.

*Including time with Barclays Global Investments and Wells Fargo Nikko Investment Advisors

With more time, more data
Growth in sources of investment-relevant information

Growth in sources of investment-relevant information

 

Source: BlackRock, as of May 2020.

Philosophy

Beating the market has always required an information edge ― something harder to achieve, and maintain, in a hyper-informed world. We believe staying ahead requires three imperatives:

Our philosophy

Robust people power

Systematic investing is more than computerized stock picking; human intellect is central to investment decision-making. Just as our process has evolved over time, so too has the people power involved in these efforts. Members of BlackRock’s earliest SAE team had backgrounds in academic finance and accounting, as well as physics and math. Today, they are joined by team members with experience in computer science, statistics and engineering. This multi-disciplinary foundation is seen as a key source of strength and differentiation.

BlackRock SAE at a glance

People power icon

Source: BlackRock, as of May 2020. Subject to change.
* Director and above. † Degree subject of highest education level.

Explore our systematic active equity solutions

Our systematic active equity capabilities cover the full geography of world markets and capitalizations, meaning investors can choose precisely the exposure they need.

Advantage Small Cap Core Fund
Advantage Large Cap Core Fund
Advantage International Fund
Advantage Small Cap Growth Fund
Advantage Large Cap Growth Fund
Advantage Large Cap Value Fund
Advantage Emerging Markets Fund
Advantage Global Fund
Advantage U.S. Total Market Fund

Latest insights

  • New perspectives on macro investing
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    New perspectives on macro investing

    Sep 11, 2020 | By BlackRock
    In today’s fast-changing market, a proper understanding of the macroeconomic environment is essential to investing. Look inside BlackRock SAE’s approach.
    Read full article Read full article
  • Sustainable investing: active equities
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    Sustainable investing: active equities

    Jul 30, 2020 | By BlackRock
    Sustainable investing is going mainstream. The Systematic Active Equity team discusses the need to dig beyond headline numbers.
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  • New technologies changing asset management
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    New technologies changing asset management

    Oct 28, 2019 | By BlackRock
    Technology is transforming the way we work. Asset managers are no exception as they seek better investment outcomes for clients. Discover how.
    Read full article Read full article