Commentaries

14 January 2021

Emmanuel Hauptmann

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

The RAM (Lux) Systematic Funds - Long/Short Global Equities Fund (Class-PI USD net of fee*) posted a performance of -0.23% last month.

The risk-on move in the market has continued to prevail in December, central bank interventions and vaccine optimism leading investors to support equities. The RAM (Lux) Long/Short Global Equities Fund saw a positive contribution from the Long book stock picks which was offset by a negative contribution from our Short picks, which have been a drag most of the year, fuelled by more speculative buying. Health Care and transportation-related stocks extended their upside in the Short book as the short covering and the drop in the levels of short interest initiated on November 9th persisted although at a slower pace in December. This short covering was partially offset by the good performance of our Momentum, Value and ML engines in the Long book. The addition of shorter-term statistical arbitrage strategies has been a positive contributor to the Fund’s performance in November and December, as it helped mitigate the fast market rotation. The Fund ended the year down , hurt by the extreme outlier events of 2020 from the March pandemic spread and the November vaccine-led rebound.

Source: RAM Active Investments.