Portfolio manager comments — Q2 2025
Fund performance was positive in the second quarter of the year, rising by nearly 7% in SEK. The quarter began on a weak and volatile note in the US equity market, following President Trump’s announcement of a series of tariffs on April 2. However, a recovery followed, primarily driven by large parts of the technology sector. Several companies with exposure to AI infrastructure delivered very strong performance.
The favorable market climate was further supported by continued low inflation and the absence of clear signs of recession in the US economy. The healthcare sector, however, underperformed due to heightened political and regulatory uncertainty.
The fund benefited from several companies with exposure to AI and data centers, such as Comfort Systems and Broadcom, as well as strong returns from Netflix and a number of software companies, including Microsoft and Intuit. On the other hand, the fund was negatively impacted by holdings in the healthcare sector, such as Thermo Fisher and UnitedHealth. The latter company was fully divested during the quarter. Relative performance was also negatively affected by the absence of certain tech companies that delivered exceptionally strong returns, such as Oracle and Advanced Micro Devices.
The fund continued to concentrate its holdings during the period, which led to the exit of several companies, including Simply Good Food, CBIZ, and Zoom Communications. Among new additions was Itron, a provider of hardware and software for electricity and water metering.
The fund continues to hold high-quality companies with exposure to structurally strong themes, such as re-shoring, electrification, and digitalization.