SI410: The Next Evolution of Trend Following ft. Nick Baltas

Systematic investing strategies rely on balancing risk models with evolving market narratives to capture long-term performance. While AI tools enhance research efficiency and coding, they require human supervision to mitigate hallucinations and ensure sound decision-making. Expanding the market universe beyond 70-80 assets offers diminishing returns, particularly when adding less liquid instruments that fail to provide additional dimensionality. Thematic investing functions as a categorical tagging exercise, where narrative momentum can drive short-term price dislocations, creating opportunities for trend followers. By integrating thematic exposure into risk models, investors can better account for cross-asset correlations that traditional metrics might overlook. Ultimately, successful systematic strategies prioritize robust risk management and the ability to distinguish between structural market inefficiencies and transient hype, ensuring that portfolios remain resilient against both equity downturns and inflationary shocks.