4.10.2022 Alpine Select Ltd.: Monthly Update September
Alpine Select has published the monthly update September 2022.
Klick here to download the monthly report.
Alpine Select hat den Monatsbericht September 2022 publiziert (nur in Englisch).
Klicken Sie hier um den Bericht einzusehen.
In September, the Fed raised its key interest rate by 0.75% (for the 3rd time in a row) to 3.25% as it races to get ahead of the inflation. With the quantitative tightening accelerating, reducing the central bank’s balance sheet, US money supply is falling at its fastest pace since 1949. The Fed is clearly signalling “we are not economies’ best friends”.
In addition, the 2’s – 10’s curve temporarily inverted to -57bpts. This level is its worst since 1981, indicating more pain ahead to US workforce and consumer sentiment. All of this is based on US CPI, which remained elevated at 8.3% in August, little changed from 8.5% in July and 9.1% in June.
As the narrative of the war in Ukraine is in motion and sham referendums will (most likely) result in the annexation of the territories in the east, the groundwork is being laid to cover the respective territories with the Russian nuclear umbrella.
These uncertainties and a probable recession in the US and EU were reason enough for market participants to further risk off.
Global indices were down for the month: S&P -8.7%; NASDAQ: -10.2%; Topix -6.4%; SMI -6.3%.
During the month, our long only equity portfolio was reduced to 23.3%, which currently consists predominantly of our core discounted and undervalued position IP Group (10.6%) and the Arcus Genseki Fund (Long Only Asian Equity Value).
We added to our existing position in Idorsia convertible bonds (maturity 2028) at low levels. Selling pressure also remains elevated in the professional markets. The high-potential Swiss-based biopharmaceutical company currently has two already commercially available (approved) lead products that are on the rise. Another indication is awaiting approval.
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.