Commentaries

14 November 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 -8.70%* (PI USD class - net of fees) over the month, underperforming the MSCI North America TRN$ which fell by -7.02%. From a market cap perspective our buckets outperformed their peers, but our all-cap approach proved detrimental here with large caps continuing to outperform their small and mid-counterparts. Generally it was a weak stock selection effect which was responsible for the month’s relative underperformance, while our allocation effect was also negative. From a sector perspective we suffered from stock picking in both the Industrial and Energy sectors. Within the former sector losses were felt within Capital Goods names. We also suffered losses from our Consumer Discretionary allocation (relative overweight), but this loss was offset by strong stock selection here, particularly Retailing. On a positive note, stocking picking in the IT sector was profitable. Allocation moves included a significant reduction of our IT exposure, across both Semiconductors and Tech hardware. Elsewhere we also witnessed our Energy exposure increase, while Materials saw its exposure increase. Our largest absolute exposure remains in Financials, closely followed by Consumer Discretionary and IT.

*Sources : RAM Active Investments