Commentaries

8 February 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 2.27% in January.

The risk-on mode seen in Emerging Markets equities in December continued in January, much more than in Developed markets, especially in the US, where we saw a round of short covering triggered by the activity of retail investors, as Gamestop and other high Short Interest names in the US market were targeted by some investors’ groups. It led to a large reduction of exposure by Long/Short Equity funds in the industry, and a reallocation from crowded short trades to index hedging, creating some downward pressure on some equity indices at the end of the month. The Short book contributed positively to the Fund’s performance, thanks to good picks from Value engines in names with deteriorating cashflow trends, mainly in the Consumer Discretionary sector in China and in the Healthcare sector in South Korea. Those Value engines also helped on the Long side, together with Momentum engines, with good plays on the Information Technology sector, while our Low Risk engines logically detracted performance. While Value engines delivered on both books in January, we are still seeing very large dispersion of valuation across Emerging Markets from which we think the Fund could benefit from.

Source: RAM Active Investments.