2.09.2021 Alpine Select Ltd.: Monthly Update August 2021
Alpine Select has published the monthly update Augst 2021.
Klick here to download the monthly report.
Alpine Select hat den Monatsbericht August 2021 publiziert (nur in Englisch).
Klicken Sie hier um den Bericht einzusehen.
It seems that the mantra of “No matter what – risky assets go up” is very much alive. August was another solid month for equity indices: S&P 500 +3%, NASDAQ +4%, CSI flat.
Despite geopolitical stress in Afghanistan, “regulation frenzy” in China, devastating Hurricane IDA, rising COVID infection rates worldwide, new inflation highs in Europe and the USA, the end of FED tapering indication; interest rates remain ultra-low or are even declining.
Comparing current interest rates with end of February 2021: 10y US Treasuries are at 1.28% (down from 1.7%), and 10y Bund yields are at -0.37% (after being positive 0.1%). It is therefore no surprise, that the equity and crypto markets continued their spectacular bull ride in August. Or is it that markets are walking the wall of fear with still too many participants missing out?
After volatile summer months, the crypto market took on renewed steam in August. We have stated that our portfolio is broadly diversified and that our investment focus goes beyond the current mainstream.
One example is Terra (LUNA), a leading platform for the issuance of algorithmic stablecoins that offers seamless financial integration for digital applications. As an example, three larger applications are built on Terra, leveraging the Terra Stablecoin (UST) to date: The Mirror protocol, which itself is a DeFi protocol that enables the creationg of synthetic assets; Anchor Protocol, which is a yield savings protocol; and CHAI, which is a payments product used by ~5% of the population in South Korea. A higher usage of the blockchain indicates further adoption and integration into real use. LUNA was up +200% in August.
Another example is the decentralised streaming service Audius, which reached a recording 6 million new monthly active users in August. It builds on the Solana Blockchain (SOL). SOL rose +300% in August.
Pfizer announced acquiring Trillium Therapeutics’ outstanding shares for $ 18.50 each to strengthen its blood cancer therapy portfolio. With Trillium shares trading at a 7% discount, we opened a merger arbitrage position and expect an annualized return of around 20% to 25%.
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.