Commentaries

11 September 2020

Emmanuel Hauptmann

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

The RAM (Lux) Systematic Funds - Long/Short Emerging Markets Equities Fund (Class-I USD net of fee*) posted a performance of -0.23%.

Dovish 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 August, while our Long book did behave well, this is our short selection that hurt us in Emerging Markets. On the long side, we benefited from a strong performance of our Machine Learning engines. The strategy contributed positively, helping to outperform the market, with good picks in Hong-Kong and Taiwan that remains the fund largest overweight given attractive undervalued stocks in the country. Still on the long side, on a sector basis, the fund benefited from a positive allocation and selection in the Healthcare and Information Technology sector. This is particularly our China-A share allocation model that found attractive neglected Chinese healthcare companies with strong growth perspective and fundamentals. 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 negative contribution from our Short book. There, our selection in South Korea and Australia detracted with exposure to companies highly valued and with negative momentum was supported by indiscriminate flows into the EM Equity market. Our short allocation to Brazil (Consumer Discretionary) has proven wise and compensated some of the loss.

Source: RAM Active Investments.