Commentaries

13 February 2019

Thomas de Saint-Seine

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

 

The RAM (Lux) Systematic Funds - Long/Short Emerging Market Equities Fund returned +0.29%* (I USD class – net of fees) in January. Emerging Markets witnessed the continuation of an incredible rally over the last six weeks, as previous global issues have abated, with investors embracing the Fed’s patient stance and dovish tones. These types of environments are typically unaccommodative to alpha generation on a fundamental basis; with rebounds of this nature highly unselective. As a result, both our long and short alpha engines struggled to keep pace in this market environment; with our Long Defensive and Momentum engines lagging, while our Value engine performed extremely well. The month was characterized by both high- and low-quality stocks rallying strongly, and particularly our engines were unable to capture these nascent and fast-moving trends. On the short side, our Value engine’s excellent alpha generation was thwarted by the positive performance from our Short Momentum and Quality engines (thus detracting). Country-wise, we saw positive contributions from Brazil, Russia and Taiwan longs, while we felt losses emanating from China & HK shorts. On a sector basis, Energy, Materials and Utilities longs contributed positive, while Communication Services shorts detracted.

*Sources : RAM Active Investments