2.11.2023 Alpine Select Ltd.: Monthly Update October
Alpine Select has published the monthly update October 2023.
Klick here to download the monthly report.
Alpine Select hat den Monatsbericht Oktober 2023 publiziert (nur in Englisch).
Klicken Sie hier um den Bericht einzusehen.
The global risk-off sentiment with deteriorating equity markets continued in October. Geopolitical escalations in the Middle East on top of fragile bond markets had an additional effect on market participants.
After having their worst month of 2023 in September equities posted another negative month: S&P 500 -2.2%, Nasdaq -2.8% and the SMI detracted 5.2%.
In the US, equities sold off driven by weakness in Megacap tech (except for Amazon) as investors digested disappointing earnings prints. Additionally, the outlook for the last quarter 2023 but also the outlook into 2024 stays rather gloomy.
US inflation stayed elevated mainly driven by heightened consumer prices, the core inflation however is slightly declining. The current core inflation at 3.7% is still far away from the target of 2%.
Meanwhile, Germany’s economy contracted -0.1% in Q3, the Bundesbank said, blaming declining industrial production, a shrinking construction sector and deteriorating non-discretionary consumption. This marks the 4th straight quarter of negative or flat growth for the largest European economy.
On geopolitics, Western leaders are sending mixed messages to Israel: While they feel its pain over Hamas’s October 7 massacre, they advise it’s best to hold off on an extensive ground invasion while negotiations continue to free the more than 200 hostages.
On Blockchain and Digital Assets we witnessed an institutional rally in October which has sent the main digital assets (BTC, ETH and Solana) soaring in anticipation of further and broader adoption. Liquidity in the market somewhat improved, but we’re cautious to write the bear market off.
Although the blockchain industry is dealing with overall supressed levels and general underestimation by the broader audience, further institutional partnerships and technological advancements could positively surprise as to what crypto can actually do.
BTC is +27% for the month; ETH +8% and Solana +70%.
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.