Alpine Select has published the monthly update August 2024.
Klick here to download the monthly report.

Alpine Select hat den Monatsbericht August 2024 publiziert (in Englisch).
Klicken Sie hier um den Bericht einzusehen.

Market commentary

Inflation rates are steadily declining in both the US and Europe. The Fed's statements following the Jackson Hole meeting were reassuring for equity markets, with Mr. Powell signalling that the first rate cut by the Fed is likely to occur in September.

August saw a strong Q2 reporting season, which helped equity indices remain resilient despite the sharp market correction and high volatility at the start of the month.

S&P 500 posted a +2% gain, the NASDAQ rose by +1%, and the SMI also increased by +1%. Meanwhile, the US Dollar weakened, falling ‑3% against the CHF and -2% against the EUR. The US 10-year Treasury yield dropped from 4% to 3.85%, setting the stage for an interest rate cut.

Another highly anticipated event was Nvidia's Q2 earnings report. While Nvidia exceeded expectations on both revenue and profit, it wasn't the blowout quarter many investors had hoped for, leading to a drop in its stock during after-hours trading and the following days, which also affected other AI-related companies.

A notable concern in August was the US national debt reaching a new milestone of $35 trillion. To put this in perspective, the current US debt equals the combined GDP of China, Japan, Germany, India, and the UK. Back in 2000, after Clinton's presidency, US debt stood at $5.7 trillion. The Biden administration has added $7.2 trillion, second only to the Trump administration's $7.8 trillion increase.

Looking ahead, the fiscal policies of either presidential candidate do not bode well for US Dollar rates or the currency's future strength.

Portfolio activity

Shares of ams Osram were added to the portfolio. The company is currently executing its strategic efficiency program, "Re-establish the Base," focusing on strengthening its profitable core to drive sustainable growth. First divestments were already executed. We believe there is more positive news ahead ultimately benefiting shareholders as the full impact of these efforts becomes apparent (i.e. sale of LED manufacturing facility in Malaysia).

For further information, please contact Claudia Habermacher (This email address is being protected from spambots. You need JavaScript enabled to view it.) or visit our website www.alpine-select.ch.

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.