2.06.2021 Alpine Select Ltd.: Monthly Update May 2021
Alpine Select has published the monthly update May 2021.
Klick here to download the monthly report.
Alpine Select hat den Monatsbericht Mai 2021 publiziert (nur in Englisch).
Klicken Sie hier um den Bericht einzusehen.
May has been turbulent in hindsight. The Federal Open Market Committee released its April Meeting Minutes on 19 May with incrementally hawkish comments on monetary policy, which gave global markets the worst daily drawdown of the year to date. However, as the US Treasury yield did not further increase and further market data came in below expectations, the month ended in recovery mode – and all major indices were up: Dow Jones +1.9%; TOPIX +1.3%, CSI China +4.9%.
A “Goldilocks” scenario with solid economic growth, moderate to low inflation and interest rates below inflation level has real chances. We therefore reiterate that equities might continue to find fertile grounds in such a “risk-on” environment.
Castle Alternative Invest, our largest position, held its ordinary shareholders’ meeting in May 2021. Among others, agenda item 4, “dissolution and liquidation of the company” was approved with 99.9% of votes. We are expecting the liquidation proceeds later this year.
May has been a particular eventful month for IP Group, our second largest position with news announcing a group strategic collaboration but also released encouraging updates on portfolio companies level with news on fair value gains, exits, milestones and successful financing rounds. The portfolio of IP Group gained in NAV terms, yet month-on-month the share price declined 3.7% given the market environment. We added to our position at these discounted levels. In addition, we are confident that resolution 20 “authorization to buy in the market” will pass at the IP Group’s ordinary shareholders’ meeting on 9 June 2021, thus enable the company’s first share buyback program.
Furthermore, May has also been a true test for our crypto managers. Many cryptocurrencies and protocols temporarily halved in value as the entire market saw a larger correction from peak since May 12th. Our managers were also hit but indicate a strong outperformance vs. the broader market. We see the event as a healthy correction and the individual results underpin our strategy to allocate (i) in a diversified manner and (ii) with active investment managers.
About Alpine Select
Alpine Select Ltd is an investment company domiciled in Zug and has been listed on the SIX Swiss Exchange since 1998. The company offers shareholders the key benefit of investing into a global diversified and CHF hedged alternative investment portfolio. The portfolio exposure is actively being risk adjusted to current market sentiment and outlook. The investment style is value oriented and the investments are selected based on the company’s target return of 6-8% p.a. above CHF risk free rate. Alpine Select maintains an active and constructive dialogue with management and board of directors of its portfolio companies in the best interest of its shareholders. Alpine Select does not charge any management or performance fees.