Here are two statements that help to shed some light on why
so many funds fancy their chances in the zero-sum game of
Because of Unilever’s broad operational reach,
it is subject to risks from changes in foreign currency values
that could affect earnings. As a practical matter, it is not
feasible to fully hedge these fluctuations.
(Unilever 2009 annual report, note 15)
The trade-weighted external value
of the Swiss franc has increased further, mainly as a result of
the recent weakness of the euro. Since the SNB [Swiss National
Bank] no longer has any room for manoeuvre, [it] has been
intervening in the foreign exchange market. In doing so, it is
aiming to act decisively to counter an excessive appreciation
of the Swiss franc against the euro, since an appreciation of
this kind would result in an undesired tightening of monetary
(Swiss National Bank, 11...