Commentaries

13 February 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 8.39%* (PI USD class - net of fees) over the month, performing in-line with the MSCI North America TRN$ which was up 8.43%. North American equities produced an amazing turnaround from December’s despair to produce their strongest January performance since 1989. Investor concerns that the Fed’s rate-hiking was too aggressive where soothed, with the Central Bank offering a more dovish rhetoric and opting for patience. Stocks surged owing to relatively strong corporate earnings, continued optimism about the U.S. economy and a big shift in the Federal Reserve's interest rate plans for 2019. Our Fund’s performance was attributable to prodigious stock selection across the Health Care and IT sectors. Here, our selection in and allocation to the right Pharma and Biotech names generated substantial alpha, while we saw gains across most of our IT picks. Elsewhere, Financials names also contributed strongly, with positive contributions emanating from both Banks and Diversified Financials. On the negative side, our losses where contained within the Consumer Discretionary sector, where Consumer Services and Retailing names produced a stellar month, and our positioning here was found wanting. On a market cap basis, our large cap picks slightly lagged their market segment, but we witnessed strong outperformance of our mid-cap names.

*Sources : RAM Active Investments