Commentaries

11 September 2020

Emmanuel Hauptmann

RAM Active Investments  RAM (Lux) Systematic Funds - North American Equities Maxime Botti Partner & Senior Systematic Equity Fund Manage

The RAM (Lux) Systematic Funds - North American Equities Fund (Class-PI USD net of fee*) posted a performance of 4.88% vs +7.36% for the MSCI North America Index TRN$.

In an environment where investors are given blank check by the Fed doing “whatever it takes” to support growth and bring equity market to more highs, the concentration of returns in the US market hurts us. Apple and Tesla’s formidable upsides following their stock split announcements illustrate the difficulty of matching market returns with a more diversified and fundamental-driven selection. Our inherent underweight in the skyrocketing Apple detracted, and this despite the stock well embodied in our portfolio. Furthermore, couple of picks in the Energy and Healthcare sector also suffered despite better fundamentals and ESG ratings. Over the month, we observed a re-allocation in Healthcare and Industrials to the detriment of Consumer Staples. Despite the violent upswings of the market, we believe our diversified sustainable exposure makes more than ever sense given the risk posed by unlimited central bank intervention.

Source: RAM Active Investments