Alpine Select has published the monthly update February 2025.
Klick here to download the monthly report.

Alpine Select hat den Monatsbericht Februar 2025 publiziert (in Englisch).
Klicken Sie hier um den Bericht einzusehen.

Market commentary

February was marked by geopolitical shifts that reshaped global alliances and economic strategies. The U.S.–Russia summit in Saudi Arabia signalled a potential recalibration of U.S. policy toward Ukraine, as President Trump pushed for renewed negotiations without European or Ukrainian input. Meanwhile, Germany’s early federal elections paved the way for a new coalition government, likely impacting EU policy on defense, migration, and energy. On the third anniversary of Russia’s invasion of Ukraine, the EU prepared fresh sanctions, though uncertainty loomed over U.S. commitment to the conflict.

Beyond Europe, China maintained its assertive military stance with another 7.2% increase in defense spending, reflecting tensions over Taiwan and regional security.

These geopolitical turmoil and renewed announcements on tariffs are affecting February performance. US Equity Indices detracted: S&P 500 was down -1.4%, Nasdaq -4%. The defensive SMI gained +3.2%.

Portfolio commentary

The recent restructuring announcement at Idorsia marks a pivotal moment for the Swiss biotech company. With the debt overhang sustainably to be resolved, the company’s renowned innovation and operational execution can take centre stage once again.

We followed the Idorsia corporate story since inception. Alpine Select started building an investment into Idorsia Convertible Bonds (CB) since 2022. The investment thesis has been rooted in the strong belief that Idorsia’s clinical assets—both approved and in development—hold a far greater value than the company’s outstanding debt.

Later this year, the CB holders will voluntarily undergo an uplift on their debt when exchanging their current senior unsecured CBs into the newly created asset backed notes issued by a special purpose vehicle. Overall, difficult to surpass in ingenuity, Idorsia has eliminated most of its debt burden while retaining the long-term upside potential from their cornerstone assets—aprocitentan, cerenimod, and selatogrel – validating our original investment thesis.

We added to the position after the announcement, underscoring our conviction in this special situation opportunity.

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.