31.08.2021 Alpine Select Ltd.: Half-year results and information on the course of business in the first half of 2021
Ad hoc announcement pursuant to art. 53 LR
- Alpine Select Ltd. («Alpine Select», the «Company») ended the financial reporting period (1 January to 30 June 2021) with a profit of CHF 11.6 million. In the comparative period (as per 30 June 2020) a loss of CHF 9.7 million was reported.
- The share recorded a positive performance of 10.90% over the first six months of 2021, after paying a dividend of CHF 1.00 per registered share in May 2021. The Net Asset Value («NAV») gained 9.45% over the same period.
Discounted Assets: The core holdings IP Group and Castle Alternative Invest («Castle AI») contributed a substantial CHF+5.26 million (CHF +3.70 million and CHF +1.56 million, respectively) to the half-year financial result. The development of the latest portfolio trouvaille IP Group, accumulated at considerable discounts, was particularly pleasing (+14.8%). By the end of June, not only had the discount to NAV decreased to around 10%, but the IP Group’s portfolio also gained in value. IP Group is well-managed, and the portfolio continues to mature which leads to a higher net cash position on the balance sheet. The outlook for IP Group for the second half of 2021 is extremely promising.
The Castle AI share price rose 7.69% in the first six months of 2021. At the ordinary shareholders’ meeting held in May, the dissolution and liquidation of the company was approved with 99.9% of votes. It is expected that the liquidation at NAV will be carried out later this year. The discount to NAV was around 6% at the end of June 2021.
Crypto Exposure: Investments in digital assets developed positively and contributed CHF +5.14 million to the half-year financial result, and all active managers deliver above-benchmark results. The highlight of this reporting period was the Zurich-based Swissrex Crypto Fund, which returned +244% in the reporting period. It seems particularly worth mentioning here that the SwissRex Fund managed the highly volatile months of May and June remarkably well (thanks to the active downside protections), while the broader cryptocurrency market recorded significant losses.
East Asia Exposure (China and Japan): The East Asia portfolio added CHF 3.91 million to the semi-annual result. Alpine Select remains committed to finding like-minded managers for an actively managed exposure in East Asia and it is therefore particularly pleasing that all the fund managers in the overall portfolio contributed positively to the half-year result.
Alpine Select significantly expanded its core position IP Group in the first half year and also improved its crypto exposure.
The uses of blockchain technology are immeasurably divers; a more diversified investment activity in this area has therefore almost been imposed. Until the end of last year Alpine Select was mainly involved in Bitcoin (BTC) and Ethereum (ETH). In the current reporting period, funds with a systematic trading approach were redeemed and assets were reallocated to the Switzerland-based Layer 1 Digital AG and a new investment was made in the 162 Digital Capital Fund.
Annual Shareholders' Meeting / Corporate Actions
At the annual shareholders’ meeting held on 17 May 2021, shareholders passed all agenda items and proposals submitted by the Board of Directors of Alpine Select. The distribution of a dividend of CHF 1.00 gross per registered share was paid to shareholders on 21 May 2021.
In total, Alpine Select has paid its shareholders a cumulative CHF 13.62 per share over the past 10 years. The Company sees no need to change its distribution policy.
With a view to its current portfolio composition along the dominant investment pillars, Alpine Select is extremely positive about the future.
On the one hand, Alpine Select is constantly on the outlook for well-managed yet discounted assets where the discount doesn’t seem justified. A prime example is the debt-free portfolio of IP Group, which was purchased in summer 2020 at a discount of around 35% to NAV. The further development of the company’s assets appears positive and significant impulses can be expected in the second half of 2021. A well-executed IPO of Oxford Nanopore Technologies should not only close the discount to current IP Group’s NAV, but also increase IP Group’s NAV.
On the other hand, Alpine Select is constantly striving to find like-minded, value-oriented, and active fund managers for strategic allocations in assets or regions in which it has conviction. The Company is confident that within its current exposure topics East Asia (Greater China and Japan), Technology and Crypto Assets it has found trustworthy investment managers who have achieved very solid results in the first six months of 2021.
Alpine Select will publish the semi-annual report as of 30 June 2021 on 6 September 2021.
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 diversified alternative investment portfolio. 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.
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