Today's edition of the Saxo Morning Call features the SaxoStrats team discussing the continuing weakness of the US dollar as commodity prices recover ground and in the wake of key US equity indices hitting all-time highs Thursday.
Strategic trade
Trade view / 10 September 2015 at 8:43 GMT

#SaxoStrats. UPDATE: Closing Carlsberg/Heineken trade

Head of Equity Strategy / Saxo Bank
Instrument: CARLb:xcse
Price target:
Market price:
We are closing our Carlsberg/Heineken pair trade with a small profit (0.3% on NAV) – it worked as a great hedge against market volatility during the last three weeks.

We have just discussed the basis of the trade and our conclusion is that there has happened a structural shift in the relative pricing between the two stocks so the old relationship is no longer holding true. The market seems to want Heineken to trade at a new, higher premium to Carlsberg.

With today's closing of Rolls Royce, Carlsberg and Heineken, the portfolio's gross exposure is now down to 173% and net 71% We aim to increase gross back to around 200% today and net by a small amount by initiating three new trading positions (two pair trades and directional long).
We will publish all three trading ideas before the US open.

Also as a small performance update. Our short-term tactical equity portfolio is up 4.5% since the crash on August 24 compared to only 2.6% for the S&P 500 so our new approach to our portfolio monitoring exposure more tightly seems to be working in our favour. Hopefully, we can keep up the steam. 

— Edited by Michael McKenna

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