Commentaries

17 September 2018

Emmanuel Hauptmann

RAM Active Investments RAM (Lux) Systematic Funds - Long/Short European Equities Maxime Botti Partner & Senior Systematic Equity Fund Manager

The RAM (Lux) Systematic Funds - Long/Short European Equities Fund returned 1.59%* (I EUR class – net of fees) in August. Both sides of the book contributed to August’s stellar performance, but it was our short book which really drove returns. Within our long strategies it was the GARP/Momentum and Defensive engines which, the latter performing superbly during the market’s downturn; proving incredibly resilient as the market slid. On the short side of our book, our Quality and Momentum picks were strong, selecting the right stocks in Germany, Italy and the UK. On a country basis we recorded gains across both sides of the book in Switzerland, Finland and France. Conversely, we felt losses emanating from Sweden and Norway picks. The two Scandinavian countries giving back a little following a productive 2018 thus far. At a sector level both IT and Financials pics helped boost portfolio returns. Within IT, our long engines were the primary drivers, while for Financials it was our short engines particularly within Spanish and Italian banks, which drove returns here. The primary detractor over the month was Industrials, where we suffered across both the long and short side. In terms of reallocation moves at the country level, we saw a significant decrease in our net exposure to  the UK at the expense of Germany. Sector-wise we trimmed our exposure to Consumer Discretionary and Energy names at the expense of Industrials and Financials.

*Sources : RAM Active Investments