Commentaries

10 June 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 2.10% in May, while global equities returned 1.44%.

The fund continues to see strong recovery of alpha as the valuation dispersion in the market remains high after the return divergences of the last few years. Both sides of the book contributed positively this month, as return dispersion persists within sectors. Our Machine Learning engines contributed the most across Long and Short books, followed by Long Momentum and Value picks continuing to perform strongly while our more defensive income engines underperformed over the month as low beta names were shunned by investors. Short picks across market cap segments were the strongest contributors, the names shorted in our Mid and Small Cap selections finishing down over the month. The fund remains net Long Materials (supported by strong commodity trends and profitability), Industrials (which was a top contributor to performance on the back of strong intra-sector dispersion) and Financials (which, once again, contributed positively) while it maintains a net Short Biotech and Pharmaceuticals exposure.

Source: RAM Active Investments.