Commentaries

12 August 2020

Emmanuel Hauptmann

RAM Active Investments RAM (Lux) Systematic Funds -Emerging Markets Equities

The Emerging Markets were strongly up in July against a backdrop of a weak USD, with mega-cap Tech companies leading the way up. The RAM (Lux) Systematic Funds – Emerging Markets Equities Fund was close to in-line with the market as a strong selection effect in Industrials and Health Care helped offset the underweight in the likes of Taiwan Semiconductor. Our multi-faceted Machine Learning book was the fund’s best contributor, while we were negatively impacted by our Income picks. Strong performance by the fund’s Large Caps selection, significantly above the index’s, helped offset the underperformance of Mid & Small Caps which still lag considerably since the beginning of the year and offer an attractive long-term potential at current levels.
The fund is strongly overweight Health Care and Consumer Staples while underweight Energy, Consumer Discretionary and Financials, and we believe it is well positioned in the eventuality of a higher volatility environment. The largest net overweight country exposure remains Taiwan, while the fund is still significantly underweight Brazil and China.  

Source: RAM Active Investments