Commentaries

17 September 2018

Emmanuel Hauptmann

RAM Active Investments  RAM (Lux) Systematic Funds - North American Equities Maxime Botti Partner & Senior Systematic Equity Fund Manage

The RAM (Lux) Systematic Funds - North American Equities Fund returned 2.58%* (PI USD class - net of fees) over the month, underperforming the MSCI North America TRN$ which return 2.99%. From a market cap perspective, our large caps detracted, but we witnessed strong performance from both our mid (and to a lesser extent) small cap exposure. Our relative underperformance was attributable to our allocation effect, contained almost entirely within the US Technology sector which enjoyed another stellar month. Our models natural bias away from these hot spots and to providing a degree of diversification continues to impinge upon returns. Away from the Technology sector, we witnessed strong positive gains from stock picking in the Health Care sector, particularly in the Pharma and Bio Tech area. In addition, our models were well placed within the Energy sector, across both Canadian and US names. August’s allocation changes include a reduction to the Materials and Financials sectors, with our models preferring IT and Industrials names. Elsewhere, our Consumer Staples allocation was slashed, as our engines struggle to find names with appealing valuations here.

*Sources : RAM Active Investments