Commentaries

8 February 2021

Emmanuel Hauptmann

RAM Active Investments  RAM (Lux) Systematic Funds - European Equities Maxime Botti Partner & Senior Systematic Equity Fund Manager

The RAM (Lux) Systematic Funds - European Equities Fund (Class-PI EUR net of fee) progressed by +0.73% over the month in a down market (MSCI Europe TRN -0.75%).

The rise of retail investors’ volume in recent quarters has exacerbated volatility in January. Large flows into high Short Interest names with US listings (Gamestop, AMC, Nokia, …) has driven to Short Squeezes on a large number of companies’ stocks and to a sudden deleveraging and short covering by the hedge fund industry. European Equities were impacted by the “second order” deleveraging, with large performance reversal of most crowded shorts versus the rest of the market. In this context our European strategies were resilient, with strong performance from all our strategies and particularly our Value engines, which continue on their recovery path. Our Long Value strategies contributed positively with good picks in the German Health Care sector and in French Industrials. It is in the Mid-Cap segment we had the best picks over the month, as our Small Cap picks slightly lagged the rest of the book. We remain overweight Industrials, where we still identify compelling dispersion in valuations, while being underweight financials and banks in particular. At a country level we have seen a reduction of our Overweight to Scandinavian countries as our Momentum strategies are reducing allocation to some of the best performing names there.

Source: RAM Active Investments