Commentaries

11 September 2020

Emmanuel Hauptmann

RAM Active Investments RAM (Lux) Systematic Funds - Long/Short European Equities Maxime Botti Partner & Senior Systematic Equity Fund Manager

The RAM (Lux) Systematic Funds - Long/Short European Equities Fund (Class-I EUR net of fee*) posted a performance of 0.28%.

The “Whatever it takes” statements by the Fed targeting employment and growth rather than inflation contributed to a boost of Equity markets and supported strong Momentum performance everywhere. In Europe, it particularly benefited our long book that outperformed the market in August, while the “risk-on” move of the market significantly hurt our Short single-name exposure. On the long side, we have been able to profit from a positive behavior of our Long Momentum strategy engines that found attractive picks in Sweden and United Kingdom. The level of outperformance of the strategy more that balanced the Value picks in our Long Book. The Value style remains out-of-favour in most European countries, with no end in sight to the global hunt for top-line growth and the next disruptor. The long book allocation remains away of the Energy sector, while finding number of opportunities in the Health Care and Information Technology sectors. Looking at Market Cap segment in Europe, we continue to see an interesting recovery of the Small/Mid Cap segment after it lagged significantly year-to-date. We see positively this development as our engines are able to profit from such opportunities across diverse market cap segment on both side of the book. On the short side, the risk-on environment that prevails with the dovish statements of the Fed led to more short covering in the market and to a negative contribution from our Short single names book, our short picks still trading at unreasonably high valuation levels.

Source: RAM Active Investments.