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.
The speed at which the global fixed income market reacted during the month of March and the subsequent recovery is undeniably no different to what has been experienced by other asset classes. Massive monetary and fiscal interventions all over the world to salvage the economy from an unprecedented economic contraction resulted in much higher central bank balance sheets and public/private sector debt. Simply put, we view the current situation as having Chinese origins and remedied with Japanese medicines, i.e. a combination of ZIRP and QE. For these policies to be effective, several conditions are necessary.
RAM AI wishes you a Happy Holiday Season and a Prosperous New Year!
RAM AI launches the RAM Diversified Alpha Strategy (UCITS), which will seek to deploy a robust and stable systematic investment process to exploit volatility and dispersion within a broadly diversified global asset allocation, with the intention of offering asymmetric returns that have low correlation to global markets.
Discover our new Academic Paper "A Deep Learning Framework for Climate Responsible Investment".
Nicolas Jamet and Tian Guo speak with Camilla Giannoni in the latest interview with Citywire Switzerland.
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.
