2.11.2021 Alpine Select Ltd.: Monthly Update October 2021
Alpine Select has published the monthly update October 2021.
Klick here to download the monthly report.
Alpine Select hat den Monatsbericht Oktober 2021 publiziert (nur in Englisch).
Klicken Sie hier um den Bericht einzusehen.
October has been a friendlier month for equities than September: S&P 500 +6.8%, NASDAQ +8%, Hang Seng +3.3%.
At the last trading day in October the corporate bond default of the Chinese Real Estate developer Evergrande was averted by a last-minute interest payment duly wired out to bondholders which helped to improve the sentiment for risky assets.
Inflation debates continue to rage in the media and there is a new mantra ‘stickier for longer’. We continue to see inflation as temporary and a feared stagflation as improbable. This because the broader application of digitalization and further technological advancements across industries tend to be deflationary by nature.
Our outlook for the equity markets remains positive, as we expect that the rise in interest rates won’t exceed the inflation rate.
Portfolio commentary and activity
On 12 October we informed the market that our investment in Rockaway Blockchain Fund carries notable yet unrealizable value. We remain constructive on the crypto asset class overall and this news is exemplary to signal the value creation in Alpine Select’s Portfolio.
As an example, the rise of Decentralized Finance (DeFi) grounded in cryptocurrency technology has expanded dramatically since the end of 2020. DeFi includes many of the same products and services capacities found in the traditional financial system but leave out centralized intermediaries. We have taken a diversified approach to invest in this new promising technology. The broader Cryptocurrency market has been up roughly +30% for the month and we also expect value gains from our managers.
We expect proceeds from our largest position Castle Alternative Invest (“CASN”) in a first larger liquidity tranche distribution to shareholders within the next weeks. We plan to accumulate in this arbitrage position until delisting. CASN discount realization will further contribute positively on our YTD NAV performance.
Our second core position, IP Group, took a breather after their highly successful IPO of Oxford Nanopore. However, throughout October there has been promising portfolio news increasing IP Group’s NAV. We see the current discount to NAV as a further buying opportunity and therefore added consequently.
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.