Portfolio manager comments — Q2 2025
Fund performance was positive during the quarter, rising by nearly 7% in SEK.
Nordic equity markets were characterized by volatility. The Nordic small-cap index rose in line with broader markets, although performance varied between countries. Denmark was the weakest, posting declines, while Finland and Norway showed the strongest performance, followed by Sweden.
The quarter began with sharp swings in trade policy. On April 2, the White House announced increased tariffs, which immediately caused equity markets to fall. Just a week later, on April 9, a 90-day pause was announced and the rhetoric softened. At the same time, Nordic companies delivered mixed quarterly reports, with tariff concerns weighed against signs of an emerging economic recovery in Europe. In this environment, we continue to favor companies with strong local presence over export-dependent players.
May and June brought renewed energy to the markets. New trade agreements with China and the UK boosted risk appetite, while improving US economic data supported sentiment. Europe presented a more mixed picture, with rising industrial production but continued weak order intake. In June, major US indices reached new highs, driven by calmer geopolitics, expected rate cuts as early as September, and continued momentum in the tech sector. July will be a stress test—if trade tensions continue to ease, rates fall, and macro data remains stable, there is good reason to believe that summer optimism may persist.
During the quarter, the fund increased its holding in Balder and reduced its position in Valmet. Among the top contributors to performance were Norbit and Asker, while Zealand Pharma and Afry were among the weaker performers.