12 July 2021

Valentin Betrix


The RAM (Lux) Systematic Funds - Long/Short Global Equities Fund (Class-PI USD net of fee*) posted a performance of -2.52% in June, bringing YTD performance to 14.51%. 

Over the month of June, lower yields weighed on cyclical value stocks, as the start of QE tapering discussions encouraged a move lower in inflation breakevens, and a pulled back of underlying commodity prices as China policymakers moved to reduce speculative activity. This triggered an outperformance of Growth over Value, while the economic consensus continues to expect a return of higher yields over the coming months and believe the recent move is more likely to be tactical than persistent. In this challenging environment for fundamentally-driven stock picking – which favored stocks mentioned on WallStreetBets, non-profitable technology companies and long duration equities – most of our engines had neutral to negative contributions to performance, on both the Long and Short sides. The net long positioning of the Fund in Financials, Industrials and Materials, as well as the net short positioning in Information Technology, Biotech and Pharmaceuticals, logically detracted performance. We still see strong dispersion of valuations within sectors, which should ultimately translate into some dispersion of returns and benefit the Fund.

Source: RAM Active Investments.