Trends Watch: Systematic Outlook

EisnerAmper’s Trends Watch is a weekly entry to our Alternative Investments Intelligence blog, featuring the views and insights of executives from alternative investment firms. If you’re interested in being featured, please contact Elana Margulies-Snyderman.  

This week, Elana talks with Ross Zhang, Founder, CEO and CIO, Logos Technologies.

What is your outlook for alternative investments?

In my view, the outlook for alternative investments is positive. Current volatile geopolitics have disrupted existing supply chains. This can be planned for through “alternative” means but not through conventional means. Secondly, new technologies like big data analysis and systematic quant have been deployed into the investing space, which in time will produce meaningful outcome. I am generally optimistic about the alternative investment space. 

Where do you see the greatest opportunities and why?

As a systematic manager, I deeply believe that in the coming decades people are going to use the systematic approach more and more and even use machine learning strategies. Pioneers like Renaissance Technologies have demonstrated an amazing ability by utilizing a systematic approach. Although the successful ones are few and will take time to appear, steadily and surely this will happen.   

Where do you see the greatest challenges and why?

The great challenge is still a risk to assets caused by a black swan event. It has happened more frequently like unpredictable earthly disasters caused by worsening weather conditions. These events have changed price patterns from a historical perspective and consequently created pains for both fundamental and technical managers. These events in today’s connected world can be triggered by any type of event. The challenge for managers is how to mitigate these risks. 

What keeps you up at night? 

I sleep soundly at night. All scenarios have been thought out and planned out in advance. Risk control measures are in place. To have sleepless nights and possibly a shorter life for financial reasons does not seem like a smart idea.

The views and opinions expressed above are of the interviewee only, and do not/are not intended to reflect the views of EisnerAmper.