SI372: QIS Unboxed: Rules, Wrappers, and Reality ft. Nick Baltas

In this episode of the Systematic Investor Series, Moritz Siebert fills in for Niels Kaastrup-Larsen and interviews Nick Baltas from Goldman Sachs about the quantitative investment strategies (QIS) space. They discuss the size and growth of the global QIS business, estimating it to be around $1.3 trillion, with a roughly even split between bank and asset management offerings, and equities dominating the asset allocation. They explore the different types of clients, ranging from asset owners to hedge funds, and the various factors driving the evolution of QIS, including research, technology, client needs, and market liquidity. The conversation also covers the challenges of data mining and the importance of a rigorous research process, as well as the potential for crowding and the need for careful scaling in the QIS business.