Commentaries

11 April 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 fell 0.87%* (PI USD class - net of fees) over the month, underperforming the MSCI North America TRN$ which was up 1.67%. U.S. equities rallied strongly over the month, in part owing to a lack of negative newsflow and to optimism about U.S.-China trade talks. In addition, the Fed’s dovish tones also contributed to this risk-on sentiment. The month’s key underlying theme was the stark underperformance of Value vs Growth stocks, with the latter continuing to trade at stretched levels. Our Strategy’s inherent value bias was the primary driver of our month’s relative underperformance. Elsewhere, the other key theme was the underperformance of small and mid-cap stocks relative to their large and mega cap counterparts, typical in phases such as these.  Losses were most keenly felt in the IT and Health Care sectors over the month, with a noticeable relative underweight to both sectors detracting further. Within IT names, both Tech Hardware and Semiconductor stocks produced a stellar month, and our models were unable to capture these fast-moving growth trends. Our model’s allocation to both Consumer sectors (Staples and Discretionary) were positive, but this positivity was eroded by our stock selection here.

*Sources : RAM Active Investments