Portfolio manager comments — Q2 2025
Fund performance was positive and rose by just over 8% in SEK.
The quarter began on a weak and volatile note in the equity markets following the US announcement of tariffs on imports from nearly all countries. However, a strong recovery followed, primarily driven by technology equities such as semiconductors, software and IT services. The industrial sector also contributed positively, particularly through companies involved in electrification and data center/AI infrastructure. The absence of recession signals in the US and growing optimism about European economies also supported the market.
The fund’s performance was supported by several companies with exposure to technology, electrification and AI infrastructure, including SK Hynix, TSMC, Quanta Services, Nextracker, Prysmian and Itron. Netflix, which was added last quarter, was also a strong positive contributor.
On the negative side, the healthcare sector lagged behind the broader market—AstraZeneca being one example.
Early in the quarter, the fund increased its semiconductor exposure by reintroducing SK Hynix and increasing its holdings in TSMC, Broadcom and Nvidia.
The fund made four new investments: Bharti Airtel (Indian telecom operator), Sanrio (Japanese creator of characters like Hello Kitty), Uber (IT platform for transport/taxi), and Royal Caribbean Cruises (US cruise operator).
Holdings in Unicharm, Hyatt, Keyence and Abbott were sold during the quarter.
The Swedish krona continued to strengthen against other currencies, which negatively affected absolute returns.