Commentaries

14 December 2018

Thomas de Saint-Seine

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 0.47%* (PI USD class - net of fees) over the month, underperforming the MSCI North America TRN$ which was up 1.79%. Generally, it was a weak stock selection effect which was responsible for the month’s relative underperformance, while our allocation effect was positive. Performance was hurt by our significant underweight to Health Care names, (the benchmark’s best-performing sector), enjoying a bump earlier in the month following the U.S. mid-term election results, and later in the month owing to positive rhetoric from the Fed. We also suffered losses from both our pics in Energy and Consumer Discretionary. From a positive perspective, both IT and Communication Services sector were strongly positive, helping to stem losses from other sectors. Despite the increase in volatility and subsequent underperformance, we remain confident in ability to outperform our benchmark over the long-term given our current positioning.

Allocation changes included a significant increase in Communication Service and Health Care sectors, while our Energy exposure was cut in half and Consumer Discretionary was reduced.

*Sources : RAM Active Investments