Monthly report February 2024 of the zCapital Swiss Small & Mid Cap Fund (class A)
The fund rose by 0.3% in February (SPI Extra +0.7%). We took advantage of the fall in Temenos' share price to add to our position. We slightly increased our positions in Valiant, BKW, Emmi and SIG Group. On the other hand, we sold shares in Bachem and VZ Holding.
Stock markets outside Europe set the tone for the month. Strong US employment data and optimism about the growth of artificial intelligence drove some indices in the USA and Japan to new record highs. Nvidia's sales and the very optimistic outlook led to a broad-based rally.
Valuations of stocks in artificial intelligence, semiconductors and anti-obesity drugs have risen massively on the back of growth fantasies, while in the traditional sectors there are more and more cheap stocks to be found. As long as market participants do not see any signs of recovery in the cyclical sectors, valuation differentials are unlikely to change. European markets will continue to be dominated by the reporting season.
