Portfolio manager comments — Q2 2025
Fund performance was positive during quarter, rising by 2.3% in SEK. Relative to the fund’s benchmark index*, the fund outperformed. Following a weak start, when President Trump announced a large number of tariffs, equity markets recovered in many areas. The announced tariffs – which were later paused – created challenges for corporate planning and the ability to provide reliable forecasts. What contributed positively in the latter part of the quarter was continued subdued inflation, stable US economic data, and increased clarity regarding tariffs.
At the beginning of the year, concerns grew about the sustainability of investment growth in AI infrastructure. During the second quarter, driven by quarterly reports from leading players, these concerns eased. As a result, and supported by strong reports, holdings such as Comfort Systems, nVent, and Everus Construction contributed positively to fund performance. Jabil and Federal Signal also performed strongly.
Graphic Packaging, Cellebrite, and Cavco posted weaker performance. A weaker macro environment, cautious purchasing behavior, and federal exposure were cited as contributing factors. Quarterly reports that fell short of expectations also negatively impacted share prices. The fund was further weighed down by a weaker US dollar against the Swedish krona.
During the period, the fund added Celsius Holdings, Dexcom, Doximity, and Zoom Communications. Cooper and Verra Mobility were divested.
The fund continues to hold high-quality companies with exposure to structurally strong themes such as re-shoring, electrification, and digitalization.
* Solactive ISS ESG Screened USA Small Cap Index