Commentaries

12 March 2021

Emmanuel Hauptmann

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

The RAM (Lux) Systematic Funds - Long/Short European Equities Fund (Class-I EUR net of fee*) was down -0.79% in February.

After a strong start of the month, global Equities gave some performance back at the end of February as a significant increase of bond yields led to volatility. Momentum progressed very strongly over the month with support of strong market trends in Materials namely, but gave back in the month end, as anticipations of a strong recovery post “re-opening” led to large under-performance of some trending “Stay-at-Home” and Healthcare Covid plays.

While Value was overall close to in-line with the index over the month, it rallied nicely in the month’s end as higher rates favour our strong cash-flow play sin the selection. Low Risk detracted again last month, continuing one of the longest streaks of Low Risk underperformance since we launched the strategies. We would expect low risk stocks to very significantly outperform in the case of more volatile markets.

On the Short side of the book, both our Short Momentum and Short Machine Learning engines were hit as “Re-open” stocks out-performed very significantly after the UK announcement of a phased end to lockdown. It was positive to see that our Short Value- and Quality-driven strategies performed themselves very well as some of the most exuberant market valuations started to correct during the end-of-month market reversal.

Source: RAM Active Investments.