Passion for Swiss equities

zMonthly SMC Fund 10/2023

Monthly report October 2023 of the zCapital Swiss Small & Mid Cap Fund (class A)

The fund lost 4.8% in October (SPI Extra -5.3%). We built a position in Sandoz. We also added Dottikon ES, Barry Callebaut and U-Blox. We reduced our positions in Inficon, Ypsomed, VAT Group and Sulzer.

October once again lived up to its reputation as a bad month for stock markets. On the back of positive economic data from the US, interest rates on 10-year US government bonds briefly broke through the 5% mark, reaching their highest level since the global financial crisis. This fact and disappointing quarterly results were reasons why equity markets came under renewed pressure.

With interest rates likely to remain higher for longer than many expect, equity markets will have to find a new valuation level. There is a significant risk that the economy will cool down in the course of next year. Although some stocks now offer attractive entry levels, the market is unlikely to have found a bottom yet.

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