The path in global financial assets is dictated by of a multitude of short, mid and long-term factors. To name a few, central banks/fiscal policies, corporate earnings and investors’ flows inevitably create dispersion, offering at the same time opportunities for systematic strategies designed to capture inefficiencies over different time horizons.The essence of systematic strategies is to benefit from dispersion in financial markets, but it would be too simplistic to leave it here. The biggest challenge lies in the pace of adaption to changing market conditions. Therefore, both trend and mean-reversion strategies bear high importance, but they do not necessarily work at the same time over an entire economic cycle.
We are delighted to announce that our strategy has been recognized as the best performing strategy in its category by the Hedge Fund Journal over 3, 5 and 7 years periods.
The year 2020 has been the most challenging one we have experienced in terms of systematic stock selection since we started RAM AI in 2007. The difficulty in systematic stock selection lies in outliers, in points never witnessed in the distribution before. Some of our alpha engines behave differently in these circumstances than what we have ever witnessed, analyzed (in the last 30 years of data available to us) or predicted. 2020 was marred by these outliers. The market moves on the surge of a global coronavirus pandemic in March, the central banks’ led rotation in June or the November vaccine-led risk-on have all been a large number of standard deviations away from the norm or from anything the markets have witnessed in the three decades.
RAM AI wishes you a Happy Holiday Season and a Prosperous New Year!
We harness opportunity through collaboration. In a diverse world of markets and asset classes. Equity and fixed income. Systematic and Tactical. Disciplined and personal. Our fusion of inquiring minds and entrepreneurial spirit works in sync with technology at the leading edge of innovation. Proudly independent, and consistently focused on returns, we work nimbly and responsively to do one thing – deliver you the highest performance.
