Commentaries

13 November 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 USD net of fee*) posted a performance of 0.14%.

In October, global economies corrected over the month amidst a worsening of the second wave of Covid in developed countries and disappointing Tech results. The fund was slightly up for the month, as MSCI Europe went down more than 5%, providing positive decorrelation over the last months.

We particularly appreciated the Long book behavior that outperformed on the market downside thanks to good selection in the healthcare sector. The best performance contributor was our Long Machine Learning engine last month, still well positioned for more volatility in the wake of the COVID crisis. Our short engines had mixed contribution over the month, central bank interventions maintaining valuations at very high levels in that tail-end of the market.

Finally, over the month, we increased on the long side our exposure to France and Finland at the expense of Sweden, while exposure on the short side has been stable. After an excellent quarter this summer, we continued to see an enormous reserve of opportunities to benefit from thanks to our Beta Neutral approach, particularly in this uncertain environment.

Source: RAM Active Investments.