Commentaries

12 March 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 4.03% 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. Momentum engines detracted performance on the Short side of the book, as “Re-open” stocks out-performed very significantly after the UK announcement of a phased end to lockdown. The large diversification of bets across the full market cap spectrum, as well as the little exposure of the Long book to growth tech names, dampened the impact of the Momentum correction.

The top contributors to the Fund’s performance in February on both the Long and Short books have been the Value engines, which have continued their rebound, as higher rates favour our strong cash-flow plays in the selection. 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.