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

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

Market commentary

In July, the stock markets experienced a sector rotation and demand shifted from US tech stocks to cyclical companies. Noteworthy is the Russel 2000 index outperformance of more than 10% vs. the Nasdaq as cooling inflation and hopes for interest rate cuts by the FED broadened the market rally.

Alongside the turbulent earnings season, which has seen significant swings in individual stocks many large companies continue to perform well in terms of revenue. However, high expenditures on forward-looking technologies like AI are weighing on profits. Investors are concerned about the scale of these expenditures and the uncertainty regarding when or whether at all these investments will pay off.

July was also a significant month in politics. In the UK, the electorate voted the Labour Party into leadership. In France, the expected rightward shift was less significant than predicted. Meanwhile, in the US, the presidential candidates have been finalized, setting the stage for a contest between Kamala Harris and Donald Trump.

Global stock markets began the second half of the year on a mixed note: the S&P 500 rose by +1.1%, the Nasdaq slightly declined by ‑0.8%, while the SMI gained +2.7%. Japan’s Nikkei index lost -1%.

Then August arrived, bringing turmoil to the markets. As of this update, the Nikkei Index dropped -12% on Monday, 5 August 2024, and is down 20% MTD. European and US markets have also fallen between 5% and 8% for the month, while the VIX index has surged to 65.

Portfolio commentary

Our digital assets exposure grew during the reporting period as the RockawayX Blockchain Fund I updated its NAV to 30.03.2024. Due to the nature of investing in private equity structures, valuations tend to lag. Q1 2024 was a formidable period for digital assets, with many leading cryptocurrencies reaching new YTD highs.

In July, Idorsia Pharmaceuticals released their H1 2024 results, highlighting progress in their company-wide restructuring efforts aimed at securing an optimal deal for their compound ‘Aprocitentan.’ Additionally, a partner is needed for Quviviq, their treatment for insomnia, and we anticipate further announcements later this year.

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.