Commentaries

10 May 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 2.11% in April.

Market conditions remained supportive for fundamentally-driven strategies, while commodity prices and European bond yields moved to fresh highs, and US long-term rates and inflation break-evens remained close to their March top. This continued to put pressure on the most overvalued Growth stocks – which are absent from our long book, while benefitting our Long Value and Machine Learning engines on both sides of the book. This was still another month of very good performance for our shorts, as the most overvalued Growth stocks among Biotech, Renewable Energy and Software companies continued to correct. The fund remains net Long Materials and Financials (which contributed positively in April) while net Short Biotech and Pharmaceuticals. Over the month, our short allocation to United States has been increased while our long book maintained its exposure there. In term of sector, our net exposure to Industrials increased at the expense of our net long Energy exposure.

Source: RAM Active Investments.