Gain with leverage

For once, we were able to achieve a performance that was significantly better than that of the SMI last week, thanks to the dollar's leverage. Since February 3, 2010, we are now at -4.58%, still in the negative zone, but clearly up from the end of 2010 (-7.23%). The SMI is also in the red over the same period, but slightly better positioned, at -0.84%.

This positive correction of the stock market and the greenback bodes well for 2011, even if it is true that these simultaneous and significant gains on both counts are rare. Taking the euro as the reference currency, the portfolio's performance last week was good, but slightly less than that of the CAC40. Since February 3, the portfolio has nevertheless maintained a good lead with +8.68% compared to 1.89% for the flagship index of the Paris stock exchange. It should be noted, however, that this gain was made at the cost of a weakening of the euro.

The portfolio volatility remains stable and low at 12.32% since there have been no changes in the current positions. The Sharpe ratio with the CHF as the reference currency is still far from our objective, and this will last as long as the portfolio performance remains negative. Unfortunately, we are still dependent on the strength of the Swiss franc. In euros, the ratio is however excellent, with 0.61% against 0.04% for the CAC40, but once again, this has come at the cost of a devaluation of the single currency.