Commentaries

12 June 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 finished down -5.87%* (PI USD class - net of fees) over the month, outperforming the MSCI North America TRN$ which fell -6.26%. Four consecutive monthly gains in U.S. markets came to an abrupt halt in May as trade tensions ratcheted higher, fuelled by President Trump’s astonishing tweets suggesting that a deal with China was off the table and his plans to increase tariffs and name-shame specific companies, like Huawei. Trump’s tweet completely wrong-footed market participants. Surprisingly small caps underperformed their large cap counterparts over the month, despite being typically viewed as less sensitive to trade disruptions than their peers. Cyclical sectors underperformed defensives over the month. Our relative outperformance was attributable to a helpful allocation effect within the Financials sector, here our positioning within certain Real Estate and Property names help up well, aided by the continuing decline in longer-term domestic interest rates. We also saw positive contributions from Health Care names, with our significant relative overweight generated alpha. Conversely, losses were felt in the Consumer Discretionary sector, specifically our overweight allocation to Department Stores, which struggled for traction over the month.  

*Sources : RAM Active Investments