Commentaries

9 January 2019

Thomas de Saint-Seine

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

 

The RAM (Lux) Systematic Funds - Long/Short Emerging Market Equities Fund returned +0.17%* (I USD class – net of fees) in December. Emerging market equities remained suppressed in December, as lower oil prices, higher U.S. interest rates and slowing growth in China all combined to trouble the region. Both our long and short engines contributed to a positive month overall, despite the struggles of the wider market. In terms of our engines’ performance on the long side, our Machine Learning (ML) and Defensive engines performed the best, while on the short side, ML and Value were December’s strongest positive contributors. From a country standpoint shorts in China & Hong Kong proved highly profitable, generating substantial alpha, as the country indicating a deceleration of its domestic economy. Elsewhere, long picks within Indonesia and Poland also proved profitable. On the negative side, longs picks within Russian and South Korean names detracted. Sector-wise, shorts in the Consumer Discretionary and Communication Services sectors contributed to positive alpha over the month, despite long picks in the former sector weighing. Conversely, we suffered losses stemming from long picks across Materials, Energy and Financials. However, these losses were dampened by judicious stock selection within our short book.

*Sources : RAM Active Investments