5.05.2021 Alpine Select Ltd.: Monthly Update April 2021

Monthly Report - April 2021

Market commentary

The first month of the second quarter 2021 brought volatility to normalized levels, after the 10y Treasury yield rose rapidly from 1.45% to 1.75% in March 2021.

The large-cap earnings season generally met expectations. In some notable big tech cases (Apple, Google and Facebook) earnings exceeded expectations leading to another strong US index month. However, Europe and Asia lagged.

Portfolio commentary

The still early phenomenon of crypto asset valuation and practical use cases of blockchain technology is a much-discussed topic.

Institutional asset managers and economists began to publicly share their research conclusions. Some highlight obvious real-world applications, like a USD 370 billion remittance payments market (on which expat workers send money to their families) that could be set up more inclusively (cheaper and faster) on a blockchain.

Others argue that the rise of the internet ultimately did not really change the business model of the financial industry, which, given the evidence of blockchain technology, might be due now. Today's innovations in the financial sector (decentralized finance or «DeFi») show profound infrastructure opportunities in the blockchain. These still fragmented financial protocols have use cases for lending, borrowing, insurance, equity / bond issuance, portfolio management, etc. This infrastructure is being further improved 24/7 and could be of significant value given the remarkable profitability of these early-stage DeFi protocols.

In our November 2020 report, we stated that our initial crypto investments totalled 3.4% of the portfolio. In February 2021, we informed that the crypto exposure was mainly assigned to three active crypto fund managers which were selected to be ideally positioned within a broadening of the crypto market. In retrospect this has been a good call seeing crypto market capitalization has risen from under USD 1 trillion to USD 2.3 trillion while Bitcoin's dominance has decreased from 70% to 45%; partly due to the value creation of decentralized applications described above.

Our crypto fund managers were roughly up 20% in April 2021.

Top Positions of the Portfolio (in % of Total Assets)

Castle Alternative Invest AG	Hedge Funds	16.4%
IP Group PLC	Equity	15.1%
Cheyne New Europe Fund L.P.	Real Estate (Legacy)	10.5%
Cash (net)	Net Cash	7.8%
Nishkama Capital Offshore	Hedge Funds	4.7%
Yuki Japan Rep. Growth Fund	Equity	4.1%

in CHF	30-Apr-21	MTD	YTD
Share price ALPN	15.20	3.40%	10.95%
Latest NAV (net, est.)	15.04	1.67%	9.58%
HFRX Global HF Index	1,235.50	1.51%	2.54%

Net annualized return (30 Sept. 2003 to 30 Apr 2021)

Share price ALPN	6.72%
Monthly NAV (net, est.)	6.39%

	Allocation by Region
	(in % of Total Assets)
		7.8%
Global	Europe	3.6%
11.6%
		44.9%
USA	China	13.7%
Japan	Net Cash	18.3%

Allocation by Asset Class

(in % of Total Assets)

Hedge Funds	7.8%
6.3%
Equity	29.3%
10.5%
Credit
Real Estate (Legacy)	19.0%
Crypto Assets
27.0%
Net Cash

Allocation by Listed/Unlisted

Investments and Cash(in % of Total Assets)

	7.8%
Unlisted Investments
37.4%	54.7%
Listed Investments

Net Cash

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 our shareholders. Alpine Select does not charge any management or performance fees.

Price-History in CHF for the Period

30 September 2003 to 30 April 2021

(Share price: net annualized return 6.72% | NAV: Net annualized return 6.39%)

16
14
12	NAV	Share price SIX
10
8
6
4
2
-
Jan-03	Jan-05	Jan-07	Jan-09	Jan-11	Jan-13	Jan-15	Jan-17	Jan-19	Jan-21

NAV Performance (in %)

	Jan	Feb	Mar	Apr	May	June	July	Aug	Sep	Oct	Nov	Dec	YTD
2021	0.3	3.0	4.2	1.7									9.6
2020	-0.1	-1.6	-3.4	-4.6	2.4	0.6	2.6	0.9	1.4	-0.2	1.7	3.5	3.1
2019	0.5	1.1	1.8	0.9	0.5	-0.9	1.7	-1.3	0.4	0.1	2.7	0.5	9.5
2018	2.4	0.3	-0.2	-0.1	0.4	-1.5	0.9	-0.2	-0.0	-1.9	-4.7	-3.0	-9.9
2017	0.8	-3.0	0.3	1.8	4.2	2.5	1.3	0.4	1.6	3.2	0.2	4.6	22.0

Alpine Facts

Incorporation date	18.09.1997	ISIN	CH0019199550	Management fees	None
Listing	SIX Swiss Exchange	Outstanding shares	8,929,808	Performance fees	None
Stock Exchange Symbol	ALPN	Custodian	Bank Julius Baer	Advisory fees	TCHF 108/annually

Contact

Alpine Select Ltd.

Gotthardstrasse 31, 6300 Zug / Switzerland T [phone] [e-mail]

Disclaimer

None of the information in this report does, by itself, constitute an offering or an offering circular according to Article 652a of the Swiss Code of Obligations and is subject to change without notice. The data is intended for information purposes only and is provided without any warranty of any kind, either express or implied. Before making an investment, you must obtain and carefully read all information needed to evaluate the investment, including, but not limited to the documents providing important disclosures regarding risks, fees and expenses.

While some information used on this report may have been obtained from published and unpublished sources considered to be reliable, Alpine Select AG neither guarantees its accuracy or completeness nor accepts liability for any direct or consequential losses arising from its use. Shares in Alpine Select are not bank deposits, and are subject to investment risks, including the loss of the principal amount invested. This investment is not guaranteed by Alpine Select AG. Past performance is not indicative of future results.