Why Systematic?

Many areas of modern life rely on scientific research and are guided by well-defined rules that are applied systematically. When flying aeroplanes or developing new medicines we rely on physics, maths, statistics and computer science. Taking these disciplines and applying them to investment research is a natural step.

Why Systematic?

Many areas of modern life rely on scientific research and are guided by well defined rules that are applied systematically. When flying aeroplanes or developing new medicines, physics, maths, statistics and computer science are all relied upon. Taking these disciplines and applying them to investment research is a natural step.

"The key to this type of investing is not just in the models; what makes a good systematic firm is great research architecture".

Dr Ewan Kirk Chief Investment Officer & Founder

The ‘black box' myth

Some people call systematic investing a 'black box'.  At Cantab our view is quite the opposite.  Systematic investments are driven by repeatable, sustainable rules; such rules can be described and do not have to be opaque. It is the human brain, the brain of a trader who makes investment decisions, that is in fact a true  “black box”.
A human brain is prone to cognitive biases caused by – among other factors – limited information processing capability, heuristics and emotional influences.
Systematic investing overcomes such shortcomings as investment decisions are handled by skilfully programmed computers performing millions of operations on millions of data points.  Rules-based investment algorithms do not rely on 'gut instinct', are not influenced by fatigue or emotions and can ensure consistency of thought.

Inherent transparency

The quantitative expertise and programming skills required to build managers’ investment systems have led some sceptics to believe systematic investing is too complex to comprehend. 
In practice Cantab’s technology executes investment programs, devised by our team, following transparent and explainable coding and programming procedures.  Our investment process is governed by clearly formulated and well-defined rules; part of what we do at Cantab is help explain to our investors how we invest their, and our own, money.

Why systematic macro?

Systematic macro offers a disciplined and scientific approach to investing and seeks to exploit persistent statistical relationships between markets.  These include trend following, also known as momentum, (relative) value and shorter term trading strategies such as statistical arbitrage and pattern recognition.
Common characteristics of the space include:
  • The majority of instruments traded are liquid futures and forwards.
  • Diversification across markets; trading over 150 liquid markets across currencies, fixed income, equity indices and commodities.
  • Volatility is generally close to constant for many managers.
  • Low correlation to traditional hedge fund and long-only programmes that invest in equities and fixed income, and limited correlation to traditional trend-following programmes.
  • Funds often offer monthly, weekly and even daily liquidity.
  • Systematic macro is one of the few liquid alternative investment styles which can provide diversification in investment portfolios.

Disclaimer

This website is issued in the United Kingdom by Cantab Capital Partners LLP ("CCP") which is regulated in the conduct of its investment business by the FCA.
Any investments or investment services mentioned in this website are not available to private customers. Any funds managed by CCP are not being marketed in EU or EEA jurisdictions other than any Approved AIFMD Jurisdiction (as defined below) and any EU or EEA investor other an Approved AIFMD Jurisdiction investor who wishes to obtain information on CCP funds will only be provided any such materials upon receipt by CCP of an appropriate reverse solicitation request in accordance with the requirements of the EU AIFM Directive and national law in their home jurisdiction.  The following is an "Approved AIFMD Jurisdiction" for the foregoing purposes: the United Kingdom, Sweden, Finland. The representative of the relevant Fund in Switzerland (the “Representative in Switzerland”) is Société Générale, Paris, Zurich Branch, Talacker 50, 8001 Zurich. The paying agent of the relevant Fund in Switzerland is Société Générale, Paris, Zurich Branch, Talacker 50, 8001 Zurich. In respect of the Shares distributed in Switzerland, the place of performance and jurisdiction is at the registered office of the Representative in Switzerland.

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