The explosion of data and advances in AI have permanently changed active investing. In an era where most market-relevant information has been created in just the last two years, the alpha edge lies not in discarding skill, but in scaling it. The core ingredients of alpha are skill, breadth, and efficiency, yet to optimise it now requires a systematic approach. Systematic investing processes vast datasets, identifies predictive linkages, and executes with discipline, stripping away behavioural biases. The portfolio construction implication is clear – now is the time for active managers to embrace scale into their investment process by leveraging data and technology to stay ahead and to help generate repeatable alpha. Those who don’t will be left behind.

Nick Burt | 0.50 CE