Commentaries

December 2018 - There was nowhere to hide - Systematic Fund Manager's Comments

9 January 2019

Thomas de Saint-Seine

RAM Systematic Fund

European Equities

Emerging Markets Equities

Emerging Markets Core Equities

North American Equities

Global Sustainable Income Equities

Long /Short European Equities Fund

Long/Short Emerging Markets Equities

Long/Short Global Equities 

   

For the first time in decades, every major asset class fared poorly, as the outlook for economic growth and corporate profits were dampened by a combination of rising trade tensions, interest rates and geopolitical concerns. Stocks around the world got pummeled, while commodities and bonds tumbled — all of which left investors with nowhere to hide. To place 2018 in perspective: even throughout the 2008 Financial Crisis, government bonds and gold offered investors some shelter (see chart below):

RAM Heatmap Inflation Adjusted Returns

2019: A transformative year

2019 promises to be a fascinating year, with sustained emphasis on geopolitical conditions and policymakers’ moves. At RAM, we continue to extol the virtues which have seen us through some of these difficult periods:

  • Diversification in terms of sources of the returns and in the inefficiencies that we look to capture.
  • Liquidity controls are increasingly important as volatility is likely to persist in the year ahead.
  • Disciplined and selective, on a company’s quality, valuation and fundamentals.

At RAM AI, the above principles, the discipline, the innovation and our long-term vision have continually been at the heart of our investment processes and vital to our success. These essential elements are the reasons why we begin 2019 with the confidence in our ability to perform well across our entire product range.

RAM AI enters 2019 with new developments

Despite 2018’s difficulties we look ahead to this year with a combination of renewed optimism and a focus on our strengths as a systematic stock picker. Below we would like to share with you our recent developments in our research efforts:

  • Implementation of our Machine Learning Strategy across European and Emerging Markets Strategies
  • Development of higher frequency and decorrelated strategies for the future
  • Bolstering of our Research Team with two additional senior hires
  • Promising results of our managed futures program that should be available in UCITS format later this year