Commentaries

9 January 2019

Thomas de Saint-Seine

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

 

The RAM (Lux) Systematic Funds - Long/Short European Equities Fund returned +0.46%* (I EUR class – net of fees) in December. Our long and particularly our short engines produced significant alpha over the month as fear sent European equity markets tumbling as continued uncertainty emanating from both geopolitical risk and policymakers spread to investors. On the long side, our Fund’s diversified approach enabled us to keep pace with the market, with strong positive contribution from our Defensive engine. On the short side all engines contributed positively; with our Short Quality and Short Value leading the way, while Machine Learning and Momentum also underperformed the wider market. From a country perspective, we witnessed strong positive contributions from our short positions in Belgium and Austrian names. Elsewhere, our strong stock selection within our Short engines were eroded by our longs, which was also evident in Spain. On the negative side, both France and Norway detracted, with long picks in both countries unfortunately offsetting the alpha generated by our short picks here. On a sector basis, judicious stock selection within our Short engines in both the Consumer Discretionary and IT sectors drove returns. Short picks in Industrials however failed to offset losses felt from our long selection engines. Elsewhere, the Financials sector proved to be the most significant detractor for our Fund.

 *Sources : RAM Active Investments