Alex Borer

“Markets are driven by the change of expectations and not by the development of the facts, yet the comments of many market observers excessively concentrate on the facts themselves. We observe the observers and try to come to conclusions by analysing their views and positioning. The foundation of this year’s risk rally was the pessimism among commentators and investors and the narrow focus on the European debt crisis. Expectations proved to be single-sided – a relief rally materialised. We have lightened the position in high yield, where a massive spread contraction in the last five months boosted the performance.”