Global markets remained highly volatile over the past week. The primary drivers were geopolitical tensions surrounding Iran and the escalating rhetoric from US President Trump until the beginning of the week. Although the talks of a possible ceasefire announced over the weekend provided short-term signals of easing, they did not change the fundamentally fragile overall situation. In particular, the continued closure of the Strait of Hormuz remains a central uncertainty factor for energy markets and explains the pronounced fluctuations in oil prices.
While the energy sector came under noticeable pressure due to this uncertainty, a counter-movement began in the technology sector. Overall, however, a nervous market environment dominated, characterized by rapid changes in direction and increased sensitivity to news flows.
Portfolio performance
No adjustments were made to the portfolio. The strategy remains clearly focused on the energy sector and is supplemented by a cash ratio of around 21% to be able to react flexibly to potential market disruptions.
Over the week, the strategy recorded a decline of around 5%, broadly in line with sector performance. Halliburton and Schlumberger (SLB) were comparatively stable.
The core holdings – Chevron, ConocoPhillips, Cheniere Energy, Occidental Petroleum, Exxon Mobil and Equinor – performed more weakly and weighed on overall performance.
Overall, the portfolio remains deliberately positioned strongly in the energy sector to benefit from structural supply risks. The existing liquidity serves specifically as a strategic reserve to take advantage of emerging opportunities in a continued volatile environment.
