Commentaries

13 November 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 2.93%.

In October, Emerging Markets Equities proved resilient in a month of correction in developed markets amidst a worsening of the second wave of Covid and disappointing Tech results in Europe and the US, not to mention uncertainties surrounding the US election and the potential explosive situation that could result from it.

The fund performed strongly in this environment, thanks to our Long Value & ML engines, and particularly from the positive contribution of our short book. Our long value engine had good selection across most countries and was able to offset the lag on our Chinese stock selection, the Chinese market being surprisingly strong last month. Across engines, we continue to see attractive opportunities in all smaller caps, despite Small and Mid-Cap under-performance over the month, contributing to a lag of our All-Cap selection versus large cap indices. But overall, it was offset by out-performance of our Large Cap picks versus the market. On the short side, our Value and Machine Learning contributed positively both strategies underperforming the market.

After an excellent quarter this summer, we continue 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.