Commentaries

10 October 2018

Maxime Botti

RAM (LUX) SYSTEMATIC FUNDS – LONG/SHORT GLOBAL EQUITIES

The RAM (Lux) Systematic Funds - Long/Short Global Equities Fund returned 0.21%* (PI USD class – net of fees) in September. The month’s positive performance was down to our short strategies, with contributions across the board, but in particular Short Momentum. Our long book also generated alpha, albeit to a lesser extent than our short book. From a country perspective Japan, Austria and China & HK were the strongest positive contributors to performance. Within Japan our long book selected the right stocks and despite our short book detracting, still produced alpha. We witnessed a reversal within Austria, with our short engines finding meaningful alpha despite a slight negative effect from our long book. On the negative side were our long selections in the UK and Canada which weighed on returns. From a sector perspective we saw positive performance generated across both our long and shorts within the Health Care sector. Here some of our long-standing short pharmaceutical names began to pay off, despite the wider sector’s overalls strong monthly performance. Elsewhere IT (shorts) and Energy (longs) also contributed to performance. Performance was dampened somewhat by our Consumer Discretionary pics, particularly in our long engines. Allocation challenges at the country level saw our Japan and HK net exposure increase markedly at the expense of Canada and Germany. Sector adjustments include the trimming of our Energy exposure, while the Consumer Discretionary sector witnessed a net increase.

*Sources : RAM Active Investments