The managers note that Broadcom's quarterly report was a significant event during the month, impacting stock market performance. The company saw a double-digit drop, which also dragged down other semiconductor firms.
"As semiconductor and software companies operate in closely related sectors, their share prices tend to influence each other around reporting periods. Currently, much of the market movement is driven by news related to AI," the managers wrote.
Another key event during the month was the Fed's interest rate cut, the third of the year, which benefited the markets. Favorable inflation figures from the US also had a positive impact and, according to the managers, increase the likelihood of further rate cuts from the Fed in 2026.
Regarding the fund's performance, Flatexdegiro, Rusta, and Palomar made the most positive contributions during the month.
"Flatexdegiro was once again the month's best contributor to the fund's total return. The company published a strong KPI report for November at the start of the month, and if the trend continues through December, it is likely they will reach the upper end, or even exceed, the company's revised forecast range for the full year 2025."
The company also benefited from Germany taking another step toward implementing a reform to stimulate private pension savings in January 2027.
Meanwhile, United Natural Foods, Blue Bird, and Lindex Group were the largest negative contributors during the month. The first of these both released a quarterly report and held a capital markets day during the month. The managers considered the report, which showed strong profit growth and improved margins, to be solid, but the market took a different view and the stock declined.
During the month, the fund added Sdiptech as a new holding, while fully divesting from Games Workshop and Volution Group. The purchase of Sdiptech was motivated by the company's shift in focus toward overarching goals of improved profitability, reduced leverage, and balanced growth of 15 percent.
"At the current valuation of about 13x underlying cash flow for 2025E, we see a good opportunity for a revaluation of the company if management delivers reasonably in line with their objectives."
The largest holdings at the end of the month were Flatexdegiro, NCR Atelos, and United Natural Foods, with portfolio weights of 4.9, 4.6, and 4.6 percent, respectively.
| BMC Global Small Cap Select, % | December, 2025 |
| Fund MM, change in percent | -0.42 |
| Index MM, change in percent | -1.43 |
| Fund full year, change in percent | 2.9 |
| Index full year, change in percent | -0.3 |
