Commentaries

14 January 2021

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 - Global Equities Sustainable Alpha Fund (Class-I USD net of fee*) posted a performance of -2.02%.

While central banks continued to intervene globally and vaccine optimism has remained in December, Emerging Markets equity indices have been generally in risk-on mode, also supported by a weak USD. The Fund finished the year down, negatively impacted by the Value engine as 2020 saw in Emerging Markets the continuation of the Growth-driven market inflows, reinforcing the valuation dispersion. In December, our Long strategies identified a lot of opportunities in Taiwan and HK stocks, while maintaining a strong underweight on Mainland China companies, which was the main performance detractor over the year. Our Low Risk and Machine Learning engines have been the most hit by the risk-on move in the market, lagging significantly given their bias towards non-cyclical stocks. The historically violent market rotation in favour of lockdown-hit industries which occurred in November has continued to weigh on the performance of our Short strategies, with the short covering and the drop in the levels of short interest initiated on November 9th persisting although at a slower pace in December. We continue to see very large dispersion of valuation across Emerging Markets from which we expect the Fund to benefit sooner or later.

Source: RAM Active Investments.