Commentaries

12 October 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 1.74% bringing the quarter return to 3.19%.

The fund posted a strong return in September thanks to the long book as well as the short book which performed extremely well over the month. On the long side, we posted positive returns as the Tech selection was resilient in the wake of more COVID worries in the markets. Over the quarter, as well as over the month, our Machine Learning engine was the month’s best contributor to the performance. In addition to the good performance of our Momentum engines, we note an interesting come back of our value strategy over the last 2 months, were we start to see attractive stock picks in the model. The fund benefited from a strong Consumer Discretionary selection in Hong-Kong and from an underweight to Mainland China and Brazilian Equities. On a Market Cap level, the Mid-Cap selection of the fund was the best performer over the month, while Small/Micro caps corrected the most and remain at compelling relative valuation levels. On the short side, we have been able to have strong short picks within the Healthcare and energy sectors. All our engines have worked well, with our Short Quality and Short ML strategies contributing the most to our outperformance.

Source: RAM Active Investments.