Searching for Signals: BlackRock’s Raffaele Savi on the Future of Systematic Investing

In this episode of Goldman Sachs Exchanges Great Investors, Raj Mahajan interviews Raffaele Savi, the global head of BlackRock Systematic, about his career, the evolution of quantitative investing, and the impact of AI on the industry. Savi discusses his early career in Italy, his move to BGI (later BlackRock), and the innovations in quantitative strategies, including factor investing and the integration of big data and machine learning. He elaborates on how AI is influencing investment approaches through scale, broader applicability across asset classes, and enhanced safety engineering. Savi also addresses the recent drawdown experienced by systematic investors, attributing it to high-volatility names and subsequent risk management adjustments. He emphasizes the importance of risk management, client interaction, and the blend of hard sciences with economics and finance in successful systematic investing.