Q4 2016 – Quarterly Investment Letter

Markets showed high levels of complacency brushing aside the negative Brexit vote consequences as all risky assets quickly recouped their losses. Global growth has softened but shows signs of stabilization. US elections dominate market sentiment in the short term and we expect the FED to raise rates in December.

Equity markets have rebounded in July but have stabilized and consolidated since early August ahead of the US elections waiting for uncertainty to dissipate. Emerging Market equities and bonds have offered the strongest performances as these have caught investors’ attention lately. We are still positive but careful around US elections and the expected FED rate increase.

US High Yield bonds and US/European Loans have been the strongest asset classes in the fixed income space and we believe they still offer great value going forward.

While we are still cautiously positive on risky assets, we anticipate that the US elections and the expected December FED interest rate hike could provide catalysts for increased volatility in the coming months.

Private Loan investments are offering very attractive yields and we allocate more capital to this illiquid asset class for investors, who are willing to lock up capital for 3-7 years.

Full Quarterly Investment Letter Q4 2016

Alpinum Quarterly Investment Letter 2-2020
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