Commentaries

13 April 2021

Valentin Betrix

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 5.86% in March, while the MSCI World index returned 3.33%.

The strong performance in March came on the back of good contributions from all our alpha engines and our short-term mean reversion strategy. The fund benefited from positive stock selection on both sides of the book as Global 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 engines lagged slightly behind.

Our Short selection delivered remarkably strong alpha in March, as some of the most overvalued Growth stocks (Biotech, Renewable Energy, Software companies…) started to correct. The fund remains net Long Financials and Consumer Discretionary while net Short Biotech and Pharmaceuticals.

 

Source: RAM Active Investments.