3.08.2022 Alpine Select Ltd.: Monthly Update July 2022
Alpine Select has published the monthly update July 2022.
Klick here to download the monthly report.
Alpine Select hat den Monatsbericht Juli 2022 publiziert (nur in Englisch).
Klicken Sie hier um den Bericht einzusehen.
The Fed raised rates by 75 basis points to 2.5% and stressed that it will continue to fight inflation even if it leads to a period of economic weakness and a slowing job market. Inflation remains stubbornly high, yet market participants interpreted that interest rates may be at the top already. Politicians debate whether or not the US is officially in recession, while the main western indices all print a green month: S&P +9.1%; NASDAQ: +12.4%; DAX +5.5%; SMI +3.7%.
China’s index CSI 300 lost 7% in July upon worsening current demand weakness. In addition, the market corrected in mid-July due to concerns around mortgage repayment risks for unfinished property developments.
On geopolitics, it’s a difficult juncture for the US-China relations which is threatening to stray away from strategic competition to open animosity. Different standpoints on Russia and Taiwan add difficulty to the bipolar world where US and China are the heavyweights.
At the time of writing, the message is out that the Vifor closing will take place on 9 August 2022, hence significantly de-risking our portfolio.
Our discounted special situation position IP Group had a solid month recovering from the lows (+22%). Half-year results will be released on 3 August, and we estimate the current discount to NAV to be at 45%.
Digital assets rebounded strongly in July. Bitcoin as the leading asset was up +25% and the second most important blockchain, Ethereum, upon which the various smart contract applications run, was up +70%. After years of research, development, and testing, Ethereum will transition from Proof of Work to Proof of Stake (The Merge) in the coming months. We expect our liquid allocation to also increase accordingly.
Alpine Select advocates further blockchain adoption and we are selectively seeking to further diversify our allocation. Through our trusted investment partners at Rockaway, we could secure an USD 1m stake in a16z funds, which is currently the most important capital provider in the still maturing digital asset industry.
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.