“This month, cyclical bets within our portfolio again benefited from the drop in risk aversion, mostly through our credit exposure. Although the pace of the global economic contraction has indeed slowed, industrial production and firm manufacturing orders have yet to improve and unemployment continues to rise. Even though a recovery is taking shape, growth will remain well below potential. Thus, we’ve introduced an implied volatility strategy (BNP Paribas Euro Long Vol) on the Euro Stoxx 50. This latter is supposed to deliver a resilient performance should the market correct or volatility increase for any other reasons.”