Commentaries

11 September 2020

Emmanuel Hauptmann

RAM (LUX) SYSTEMATIC FUNDS – LONG/SHORT GLOBAL EQUITIES

The RAM (Lux) Systematic Funds - Global Equities Fund (Class-PI USD net of fee*) posted a performance of -1.66%.

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 the US, with high concentration of returns in the market, illustrated by Apple and Tesla’s formidable upsides, the fund did suffered on both side of the book. On the long side, in an environment where investors are given blank check to do “whatever it takes” to bring the equity market to more highs, our inherent underweight hurts us in August. In this condition our selection in other countries were of little help despite positive stock picks in some region. 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 a negative contribution from our Short single names’ book. Over the month, the fund has increased its net exposure to South Korea because of the long engine finding attractive opportunities there. On sector level, interestingly, the fund decreased the net exposure to Healthcare with re-allocations coming from both sides of the book.

Source: RAM Active Investments.