Laurent Belloni, co-manager of Pictet Premium Brands explains that by 2009-2010 the fund recovered more quickly than the overall market. This may be attributable to the fact that aside from discretionary consumption the fund holds more stable and defensive stocks in (food), spirits, sports, wellness or cosmetics as Lindt or Diageo. Aside most companies in the Premium Brands spectrum have more cash than debt, as is the case of Tiffany, Hermes, Swatch, L´Oreal or even BMW. To this adds that valuations are at 15 times earnings, well below historical 20. The fund is exposed to equities sentiment but is able to hold a more defensive position, including maximum five per cent cash.