Commentaries

12 March 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 2.24% in February.

Most of the gains were generated during the market downside in the second half of the month, on the back of a rapid increase in the levels of long term interest rates in the US – to which some Emerging Markets economies and some large cap growth names largely represented in benchmark indices are particularly sensitive. The fund’s strong diversification and exposure into under-the-radar opportunities within Small and Mid Caps helped significantly during the downside at the end of the month. The Long side of the book, the main performance driver was the fund’s GARP Momentum strategy, which is capturing strong dispersion in the market, particularly in the lower market cap segments.

The Short side of the book benefitted from the good behaviour of some Value engines as higher rates may lead to more emphasis from investors on current cashflows and income, while we are still seeing very large dispersion of valuations across Emerging Markets. We believe it is likely investors resort to focusing again on fundamentals after years of ETF and Mega-Cap funds’ growth, which should benefit our Small and Mid-Cap selections.

Source: RAM Active Investments.