| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Castle Alternative Invest AG (CASN.SW) is a Switzerland-domiciled fund of hedge funds managed by LGT Capital Partners (Ireland) Ltd. Established in 1996 and listed on the Swiss Exchange (SIX), the company specializes in global hedge fund investments, employing strategies such as long/short equity, relative value, event-driven, and CTA/macro approaches. As part of the Financial Services sector and Asset Management industry, Castle Alternative Invest AG provides diversified exposure to hedge fund strategies, catering to investors seeking alternative investment opportunities. The fund's structure allows for risk diversification across multiple hedge funds, reducing single-manager dependency. With a focus on global public equity markets, the company plays a niche role in Switzerland's robust financial ecosystem, offering institutional and private investors access to sophisticated hedge fund strategies through a single investment vehicle.
Castle Alternative Invest AG presents a specialized investment proposition for those seeking hedge fund exposure with the diversification benefits of a fund-of-funds structure. The company's CHF 1.74 million revenue and CHF 417,000 net income in FY 2021 reflect its operational scale in the niche alternatives space. A notable attraction is its dividend yield, with a CHF 14.37 per share distribution. However, investors should consider the inherent risks of hedge fund strategies, including market volatility and liquidity constraints. The fund's 1.13 beta suggests slightly higher volatility than the market. With no debt and CHF 17.18 million in cash, the balance sheet appears strong, but the lack of operating cash flow data warrants caution. This investment suits sophisticated investors comfortable with alternative assets' complexities and return profiles.
Castle Alternative Invest AG competes in the specialized fund-of-hedge-funds (FoHF) segment, where differentiation stems from strategy selection, manager access, and risk management. Its competitive advantage lies in its long track record (since 1996) and association with LGT Capital Partners, providing institutional-quality manager selection. The multi-strategy approach diversifies risk across hedge fund styles, appealing to investors seeking broad alternatives exposure. However, the FoHF model faces challenges from direct hedge fund investing and liquid alternatives like UCITS funds. The Swiss domicile offers tax advantages but may limit appeal in some jurisdictions. Performance fees and layered costs (fund-level plus underlying hedge fund fees) remain a structural disadvantage versus simpler products. The company's small scale (CHF 1.7M revenue) suggests it's a boutique player rather than a market leader, potentially limiting negotiating power with top-tier hedge funds. Its value proposition hinges on delivering consistent returns net of fees—a challenge in the current low-yield environment where hedge funds struggle to justify their cost structure.