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Quantitative Finance · Glossary

What is Systematic manager, discretionary manager?

Also known as: systematic manager · discretionary manager

Definition 4.1 The Industry: Firms, Roles and Careers · Chapter 4 — Quantitative Hedge Funds and Systematic Managers

A systematic manager is an investment manager whose trading decisions are taken by rules implemented in software, from models fitted to data; people design, test, monitor and change the rules, not the trades. A discretionary manager is one whose portfolio managers decide the trades, with whatever analysis supports them.

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