Maxime Botti, senior equity fund manager for RAM Active Investments presents RAM's systematic selection process, ahead of his presentation at the Fund Selector Forum in Sweden on 7 May.
Maxime Botti, senior equity fund manager for RAM Active Investments presents RAM’s systematic selection process, ahead of his presentation at the Fund Selector Forum in Sweden on 7 May.
The systematic selection process screens across the EU15 as well as Switzerland and Norway and selects 6000 best performing stocks, which are then subjected to the funds liquidity criteria, excluding stocks with a capitalisation of less than €150Mn.
Cornerstone of this bottom-up approach towards equities is the equal balance between a behavioural and fundamental approach, described as long term optimal blend.
The fundamental approach emphasises value profitability, value cash flow and defensive strategies whereas the behavioural approach emphasises the price earnings – and value momentum.
According to Botti, the ability to select from a broad variety of stocks across countries is particularly useful in a diverse region such as the European market. “The more fragmented our investment universe is the better in terms of capturing inefficiencies” he argues, highlighting the funds ability to select stocks in various in the EU15, Switzerland and Norway.
Botti expresses optimism in the outlook prospects for the crisis-hit countries: “We are currently overweight on Italy and Spain and underweight on core countries such as France and Germany.” Nevetheless the core European countries such as the UK, Germany and France are dominating the portfolio.