Commentaries

10 October 2018

Maxime Botti

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 -0.97%* (PI USD class - net of fees) over the month, underperforming the MSCI North America TRN$ which return +0.39%. Broadly it was a weak stock selection effect which was responsible for the month’s relative underperformance, while our allocation effect was flat. From a market cap perspective, our large caps selections contributed, but we witnessed strong negative performance from both our small caps (and to a lesser extent) our mid-caps. From a sector perspective we suffered from stock picking in both the Health Care and IT sectors. Within the latter sector losses were felt across both Semiconductors and Technology Hardware names. We also suffered losses from Industrials picks, as stock selection within Capital Goods had a detrimental effect on performance. On the positive side both Energy and Financials (Banks) proved resilient amid a difficult landscape for our Fund. Changes at the sector level saw our IT and Consumer Discretionary sector exposure increased at the expense of Industrials and Energy. Our largest bets relative to the benchmark include Financials and Industrials. From a market cap perspective our models increased their large and small cap exposure, while our mid-cap names were trimmed.

*Sources : RAM Active Investments