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

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

Market commentary

The Q3-2024 earnings season is in full swing in the stock market and the U.S. economy appears to continue growing robustly, while consumer sentiment in the Eurozone is rather modest.

So far, around three-quarters of S&P 500 companies having exceeded analyst expectations. Nevertheless, investor expectations for the future, which were factored into prices, were in some cases even higher.

A good example is Microsoft which managed to surpass earnings estimates, but the stock still lost 6% following the release of the results due to a weaker-than-expected outlook. Meta and Apple also disappointed investors with a cautious outlook or continued high investments in AI. Given the lofty valuations, investors are sceptical about whether the massive spending on AI will ever reap adequate return.

Risk assets declined in the last week of October given some glimpse outlook but in general the US indices closed just slightly negative for the month: S&P 500 -1% and the NASDAQ -0.5%.

As Europe is likely to see only modest growth medium-term, the divergence in risk asset pricing was observed this month again: EUROStoxx Index losing -3.5% and the SMI detracted -3%.

Portfolio commentary

In the overshadowing event of US presidential elections, Bitcoin almost marked a new all-time high during October, gaining +11% MTD.

Idorsia pharmaceuticals announced their financial result for the first nine months of 2024. Although the revenue numbers were tiny compared to the total debt outstanding, CEO André Muller stated that: “The one thing everyone wants to hear about – both internally and externally – is the status of a deal with Aprocitentan. I’m pleased to share that our efforts on this front are advancing well.” Such a statement is comforting that a deal is to be communicated within the next weeks to secure going concern and turn the Idorsia story towards stability and growth.

IP Group continues buying back shares in the market for additional £10m as announced. We see further cash realization events in the next 12 months which give ample room to continue shareholder friendly actions given the current steep discount to NAV.

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.