3.10.2023 Alpine Select Ltd.: Monthly Update September
Alpine Select has published the monthly update September 2023.
Klick here to download the monthly report.
Alpine Select hat den Monatsbericht September 2023 publiziert (nur in Englisch).
Klicken Sie hier um den Bericht einzusehen.
In September, equities had their worst monthly performance of the year so far: S&P 500 -4.5%, Nasdaq -5.7% and the SMI detracted 1.5%.
Looking through on a year-to-date basis, equity markets are still pricing in an optimistic soft-landing (S&P +11.5% / Nasdaq +24%) while bond markets are pricing in a recession. Yields on long-term bonds are rising more than yields on short-term bonds (bear steepening) which underpins the mantra ‘Higher yields for Longer’. Notably, the U.S. 10-year treasury yield (4.63%) reached a level unseen since 2007.
After almost two years of monetary tightening, at least a pause of interest rate hikes by the US and European Central Banks is on the horizon. Jerome Powell in his rather hawkish comments reassured there is currently no reason to ease soon.
Meanwhile, commodity prices have risen substantially and particularly Oil prices are up almost +30% since the July lows. Not much easing is seen on the horizon as OPEC+ have cut production and the geopolitical tensions have left some strategic reserves to be filled-up again.
China’s current economic situation is fragile. The economic data over the past few months has largely painted a gloomy picture. Chinese households are spending less than expected and saving more instead. And while the overall jobs situation has been stable, unemployment among the country’s youth has jump ed so much that Beijing decided to stop releasing the data. What’s not reported – does not exist. What is unquestioned however, that China’s property crisis deepens as Evergrande’s future looks dire.
With Cheyne Total Return Credit Fund, an actively managed, long-biased corporate credit strategy with a defined maturity of December 2024, we are participating in short-dated investment grade credit. The strategy is delivering well with a YTD performance of +14.7%.
On Blockchain and Digital Assets there is pressure from various ETF issuers to debut a spot Bitcoin ETF in the US Market. The US Securities and Exchange Commission (SEC) is further delaying its comments on the numerous ETF applications. We expect approval soon which will bring institutional characteristic to the still young Digital Assets Market.
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.