Commentaries

9 January 2019

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 -10.36%* (PI USD class - net of fees) over the month, underperforming the MSCI North America TRN$ which fell -9.02%. North American equities concluded a tumultuous 2018; posted their worst yearly performances since the 2008 Global Financial Crisis. In a year fraught with volatility, characterized by record highs and sharp reversals, the major U.S indices recorded their biggest monthly loss since February 2009. Investor concerns centered upon news of an economic slowdown and fears the Federal Reserve could be making a mistake in its monetary policies. From our Fund’s perspective our all-cap approach again cost us, with investors particularly skittish, the relative safe havens were within the mega and large cap index heavyweight names. Indeed, within our large cap segment (equating to c.55% of our portfolio) we comfortably outperformed. Sector wise we saw three primary detractors; Communication Services, Health Care and Industrials. Within Health Care, our weak selection of Pharma and Bio Tech names detracted markedly overall, while within the Industrials sector, Capital Goods stocks also weighed. From a positive standpoint, both Consumer Staples and Energy selections proved fruitful. Within the former; our selection of Food, Beverage and Tobacco stocks were a great boon for the Fund.

*Sources : RAM Active Investments