13 April 2021

Valentin Betrix

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 up 3.95% in March.

The fund benefited from positive stock selection on both sides of the book in March as European Equities marched higher on the back of strong economic numbers out of the US. The continued increase of US yields put more pressure on the most overvalued Growth stocks, the rotation into Value accelerating during the month. Our Long Value and Machine Learning engines performed strongly over the month, helping the Long Book out-perform, while our Long Momentum and Low Risk engines lagged slightly behind.

After a difficult start of the year (see The Big Short Tantrum), our Short selection is eventually delivering strong alpha in March, as some of the most overvalued Growth stocks in Europe (Biotech, Renewable Energy, Food Delivery…) are starting to correct. Strong picks in Consumer stocks were among the best performance drivers, while Shorts to Biotechs, Energy and Banks added to the performance. The fund remains net Long Industrials and Consumer Discretionary while net Short Banks, Biotech, Airlines and Oil & Gas stocks.

Source: RAM Active Investments.