Commentaries

13 February 2019

Thomas de Saint-Seine

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

 

The RAM (Lux) Systematic Funds – European Equities Fund outstripped it benchmark, returning 6.69%* (Ip-EUR class – net of fees) vs 6.19% for the MSCI Europe TRN. European markets experiencing a substantial risk-on environment with signs of improved valuations enabling stocks to post their biggest monthly gain since October 2015. Typically, this type of strong market recovery can prove most unhelpful for our style; however, we also noted the recovery of small and mid-cap stocks, a clear reversal from Q4 2018’s pain. Here, our selection within their respective small and mid-cap segment contributed significantly to our overall outperformance. From an engine perspective, our Value and Machine Learning Strategies were the month’s clear strongest positive contributors, followed by Momentum, while Defensive lagged the wider market. From a country perspective, stock selection in the UK proved highly beneficial, as did prodigious stock selection across German and Italian names. Conversely, a negative selection effect in Sweden detracted, but this was reduced slightly by our positive allocation here. On a sector basis, both Energy and Industrials names contributed strongly, with significant alpha generated in Italy (Energy) and Germany (Industrials). Elsewhere, Health Care picks within both Germany and the UK were also helpful.

This month we have added the MSCI equally weighted version of our Fund’s benchmark. This is in response to our investor’s request desiring further comparison elements in our reports, given our Fund’s more diversified approach that have significant stock specific cap by line.

*Sources : RAM Active Investments