Commentaries

11 April 2019

Thomas de Saint-Seine

RAM (LUX) SYSTEMATIC FUNDS – LONG/SHORT GLOBAL EQUITIES

The RAM (Lux) Systematic Funds - Long/Short Global Equities Fund returned 0.80%* (PI USD class – net of fees) in March. Global equities produced a continuation of their rally, marching solidly higher and extending their upward momentum, coming off their best quarter in nearly a decade. March was 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. March’s key underlying theme was the stark underperformance of Value vs Growth stocks, with the latter continuing to trade at stretched levels particularly across both the IT and Communication Services sectors in Asia, our models were naturally diversified away from these hot-spots. From an engine perspective, both sides contributed alpha, with our longs producing more alpha than our shorts. From a country perspective, we saw pics in Asia generating alpha with both Hong Kong& China and Japan all contributing nicely. Conversely, selection in the U.S. and Australia proved to be difficult for our long engines, costing us in a rising market displaying little dispersion, however towards the end of the month our short engines kicked in, dampening the weakness in our long books. Here our short Value and Quality were particularly alpha generative. From a sector perspective, Health Care names continue to be a source of grievance for our engines; with pharmaceutical and bio tech names continuing to display negative fundamentals ideal for our Short Quality engine, but thus far the market remains largely ignorant of this situation. We witnessed alpha generated across both sides of the book in Consumer Discretionary and IT names, primarily from our Defensive/Low-Vol and Momentum strategies.

*Sources : RAM Active Investments