Bellevue Entrepreneur Switzerland (CH)

Swiss SMid Caps as measured by the SPIEX Index increased by 3.3% in the month (SMI +4.8%, MSCI World -0.8%, Nasdaq -2.8%). The US-Iran framework agreement announced on 15 June triggered the gradual reopening of the Strait of Hormuz and a sharp reversal in oil prices. The easing in energy prices reduced the immediate risk of a renewed inflation shock and allowed recent central bank communication to become somewhat less hawkish. The ECB nevertheless raised rates by 25 bps during the month, while the Fed kept rates unchanged and maintained a data-dependent stance. The Eurozone Composite PMI improved to 49.5 in June, as a recovery in services (48.9) narrowed the drag on activity, while manufacturing (51.4) remained in expansionary territory for a fifth consecutive month. Switzerland's procure.ch Manufacturing PMI eased to 54.3 in June from May's near four-year high of 57.3, missing expectations but remaining firmly in expansion territory. From a sector perspective Materials (+9.4%), Health Care (+6.5%), and Industrials (+3.0%) performed best while Utilities (-7.2%), Communication Services (-6.2%) and Consumer Discretionary (-2.4%) lagged the most.

Against this backdrop, the Fund (B-share, CHF) increased 2.4%, underperforming the benchmark by 92bps. Over H1 the Fund is up 9.1%, 12bps above its benchmark.

Main detractors in the month were Huber+Suhner (-16.3%), Kardex (-16.1%) and Sulzer (-9.5%). Huber+Suhner experienced some profit-taking in the sector rotation. Fundamentals remain strong with robust momentum in AI optical connectivity, driven by accelerating AI cluster deployments and increasing adoption of high-speed optical interconnects. Kardex issued a profit warning as its growth initiative is weighing on margins. 2026 revenues are expected to grow 15-20% but at much lower margins of 8-10% leading to significant negative EPS revisions. The mid-term targets have been kept unchanged but valuations remain unsupportive in this transition year. Sulzer’s 2026 earnings expectation are heavily H2 loaded. While no swift recovery should be expected in Chemtech, the more favourable brent prices should support a return of capex appetite and demand.

Top 3 contributors were Polypeptide (+24.1%), Compagnie Financiere Tradition (+15.1%) and Inficon (+11.8%). Growing speculation around a potential takeover bid from both strategic and financial buyers supported Polypeptide, alongside a more constructive tone on the ramp-up of its new manufacturing facility. The Interdealer Broker Tradition recovered the lost territory of the previous month. Inficon maintained its steep upward trajectory, with Q2 results expected to reinforce the company's broad-based growth story. While Semiconductors should remain the key growth driver, strong contributions from Defense, HVAC, and Leak Detection are also anticipated, potentially supporting a second upward revision to full-year guidance.

Our fund caters to both global strategic investment trends and idiosyncratic ideas. We appreciate champions in the niche benefiting from the AI infrastructure investments, electrification and Sovereignty but our portfolio is also invested in companies driving value through Self-Help initiatives and the recalibration of their activities. With a strong and increasing participation of retail investors and ever more passive investment flows, equity markets are fast moving both on the upside and the downside. Also shocks - big and small - become a more recurring feature, amplified by modern communication. To navigate this “postmodern” environment (as coined by Goldman Sachs’ Oppenheimer) we stick to our proven Entrepreneur investment philosophy and stock picking valuation discipline maintaining a diversified approach, not putting all eggs in the same basket.