Commentaries

8 October 2019

Emmanuel Hauptmann

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 ended the period up 2.46%* (PI USD class - net of fees), outperforming the MSCI North America TRN$ by 0.70%. U.S. equities posted positive gains in September, as the U.S. and China finally set a date to go back to the trade table and the Federal Reserve lowered its main interest rate for the second time this year. With economic data still painting a picture of a decelerating U.S. economy, trade issues continue to remain the focal point for traders. The Fed chair emphasised that the Fed is using the tools at its disposal to support demand and counteract economic weakness. However, it has no way to resolve trade issues. September’s low-key return hid a wildly rotating market as bond yields touched the bottom of the market earlier in the period. Cyclical names have outperformed their defensive counterparts, while Momentum names capitulated (along with low volatility stocks – albeit to a lesser extent), and Value made a comeback. This environment was conducive to producing outperformance, and this was visible across IT, Financials and Consumer Discretionary picks. In the former sector, out underweighting of Data Processing names in addition to prudent stock selection here were highly alpha generative. In the latter sector, we saw Internet and Restaurant names deliver strong alpha in our portfolio, with our engines identifying value and growth pics emitting attractive valuation levels. Financials picks, especially within Asset Managers and Property were also profitable, as was our relative overweight here.

*Sources : RAM Active Investments