Leda Braga – Systematica Investments (Manager Meetings, EP.10)

Data & Algorithms

Leda Braga highlights the transformative role of data and algorithms in systematic trading strategies. She notes that the increased comfort with algorithmic approaches has led to a greater reliance on data-driven decision-making, which contrasts with the traditional emotion-based decisions. This shift has allowed Systematica Investments to explore new techniques, such as machine learning, and to process a large volume of data sets efficiently.

Another positive aspect of this AI wave is that people have become more comfortable with algorithmic approaches to things.

--- Leda Braga

Braga emphasizes that the field of data science is integral to their business, with specialized data sets and mathematical techniques enhancing their investment decisions 1 2.

   

Diversification

Diversification is a cornerstone of Systematica's investment strategy, as explained by Leda Braga. She stresses that while expected returns are long-term and uncertain, diversification helps manage risk and stabilize portfolios. This approach is crucial in a landscape where correlations are more persistent than returns, allowing for better risk management.

Diversification is for certain returns. They are forecast, they hopefully realize over the long term, but it's very hard.

--- Leda Braga

Braga also points out that controlling risk is more feasible than predicting returns, making diversification an essential strategy for achieving client satisfaction 2 3.