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

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

Market commentary

The ECB, the SNB, and the US Federal Reserve (FED) have all lowered their key interest rates in December. The SNB surprised the market with a larger-than-expected rate cut of 50 basis points.

Despite the rate cut of 25 bps, the FED’s tone was clearly hawkish. Chairman Jerome Powell indicated a more cautious stance going into 2025 with fewer cuts than previous estimates had indicated. As a result, US treasury yields increased, and risk assets declined.

Although US inflation figures were in line with market expectations, they were considered too high by the FED decision makers. Data on the US labour market continues to confirm the picture of a stable US economy while declining consumer confidence and rising delinquency (credit card or car loan defaults) point to a potential slowdown.

Indices showed a mixed month: The S&P 500 was down -2.5%, Nasdaq +0.5%, SMI -1.4% and Euro Stoxx 50 +1.9%.

Portfolio commentary

Our core position IP Group had an eventful month. First the group sold less than 10% of their stakes in 6 of their balance sheet companies to Lexham Partners (secondary transaction), generating some £15m at a small premium to carrying value (which is very comforting news). Later the group reported that VISA completed the acquisition of Featurespace and IP Group received £119 in proceeds. Following the first news, IP Group increased their current share buyback programme by +£10m and on the latter news by another +£25m. IP Group shares gained +22%. The discount to NAV remains steep at 50%.

Digital assets overall held their new heights. Bitcoin even hit a new all-time high of $108k on 17 December 2024. It has been an eventful year for Crypto. Hopes of a more permissive regulation by the SEC and a US Congress that may be passing some meaningfully supportive legislation let to a broad market rally Year to Date.

After Idorsia announced that it has entered exclusive negotiations with an undisclosed party for the global rights to aprocitentan in November the company released a statement late December that the deal will not be closed by end of year 2024. Thereupon the convertible bonds sold off to deep distressed territory which we believe is exaggerated.

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.