Market perspectives, fund updates, and insights on systematic investing from the team at Blackworks Capital.
Every market movement—whether a sudden crash or a sustained rally—is the product of multiple forces acting simultaneously. The challenge for investors is not just identifying these forces, but translating them into measurable, repeatable investment decisions free from emotional interference.
Read Article →Behind every algorithmic trading decision is a process. Not a guess, not intuition, not an idea shouted across a trading floor. A disciplined, repeatable process that moves from hypothesis to tested algorithm to live capital.
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The hedge fund of the 1980s ran on conviction. Hire the smartest person in the room, give them capital, trust their gut. The floor trader with decades of experience, synthesizing fragments of information into decisive trades—that was the edge.
That model still exists. But it’s aging out, and there’s a reason.
Read More →A student memorizes every practice test for a standardized exam. They can recite 500 answers perfectly. Then they sit the actual test and score mediocrely. They memorized the questions, not the principles.
Read More →The term "hedge fund" carries baggage. Aggressive traders, excessive leverage, secretive strategies, astronomical fees, returns that are either dazzling or catastrophic. Hollywood hasn't helped.
The reality is considerably more mundane. And that's good news.
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A 25% annual return means nothing in isolation. Was it earned on a smooth ride or through stomach-churning drawdowns? Could you have gotten a similar result from a leveraged index fund? Did the manager deliver it consistently, or was it one brilliant quarter propping up three mediocre ones?
Read More →The financial industry venerates size. A $50 billion AUM figure reads as a badge of competence. Investors have been trained to believe bigger equals safer, more established, more stable.
When it comes to generating alpha, this assumption inverts entirely. Size becomes friction.
Read More →September 2008. A portfolio manager looks at their statement: 60% stocks, 40% bonds. Diversified by the textbook. Then Lehman collapses. Stocks drop 40%. Bonds—the safe haven—down 15%. Everything falls together.
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