Robin Wigglesworth writes: Since the bruising losses of the financial crisis investors have sought out novel and complex ways to play markets more safely. Many have increasingly turned to computer-driven “systematic” investment strategies that aim to maximise returns while mitigating risks — whatever the market conditions.

The attractions are understandable. Many traditional fund managers’ investment returns have consistently underperformed, though this has not diminished their hefty fees. This has burnished the appeal of the systematic investment industry, the creation of a new generation of scientist asset managers who use complex algorithms to beat the market. Freed from the shackles of human bias and slow reaction, their funds harness computer power to constantly and automatically exploit millions of minuscule investment opportunities, using sophisticated risk management tools that aim to tame volatility rather than be terrorized by it.   Systematic Investing