Monthly report April 2024 of the zCapital Swiss Small & Mid Cap Fund (class A)
The fund lost 1.3% in April (SPI Extra -1.5%). We made purchases in Baloise, Sulzer, U-Blox, Emmi, Barry Callebaut and Zurich Airport. On the other hand, we took some profits in VAT Group, Lindt & Sprüngli and Comet.
The upward trend in equity markets which had lasted for several months came to a halt in April. The publication of US inflation figures led to a rise in long-term interest rates and a breather for equity markets. Towards the end of the month, the monetary policy outlook receded somewhat into the background as investors focused on the upcoming quarterly earnings season. Despite patchy results, equity markets were able to recoup some of the losses of the previous weeks.
The quarterly results of Swiss companies have been mixed so far. What many companies have in common is that management expects business to improve in the second half of the year. As a result, investors have little visibility, as meeting annual guidance is based on hopes. These factors, together with rising interest rates, are likely to limit the upside potential for equity markets.
