Commentaries

15 March 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 4.06%* (PI USD class - net of fees) over the month, outperforming the MSCI North America TRN$ which was up 3.25%. North American equities produced a stellar February with a continuation of January’s surge in performance. The Federal Reserve’s U-turn since December has continued to support equities, enabling the continuation of their upwards trajectory for a second consecutive month.  All major U.S. sectors closed out February with strong positive YTD gains, with the January’s trend of smaller cap stocks outperforming large, and cyclicals outperforming defensives, rolled on into February. Our Fund’s strong outperformance was attributable to prodigious stock selection across the Consumer Discretionary and Communication Services sectors. Within the former sector, we saw our selection of the right Internet & Direct Marketing and Specialty Store names generating substantial alpha, while within the latter, Broadcasters led gains. Elsewhere, Financials names (and a significant underweight here) also contributed strongly, with positive contributions emanating from Property Insurance. On the negative side, our losses where contained within the Industrials sector, where Airline names produced a poor month, and our overweight relative allocations here were 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