At the outset, the managers note that the Stockholm Stock Exchange performed strongly in December, climbing 2.3 percent. The small-cap index rose by 0.3 percent, while the World Index gained 0.9 percent. For 2025 as a whole, the Swedish stock market advanced 12.8 percent, with the small-cap index up 1.9 percent and the World Index up 20.0 percent.
The managers explain that their strategy is to invest in undervalued or reasonably valued quality companies, where quality is primarily defined as the ability to increase earnings per share over time.
"In investment companies, serial acquirers, and conglomerates, it is therefore largely about management's ability to make the right decisions: to allocate capital efficiently, choose a wise strategy, and ensure that the right people are leading the business," the managers write.
When assessing quality, they primarily start with the companies' financial history, as this is said to reflect underlying factors such as business model, corporate culture, and competitive advantages. They then analyze whether anything fundamental has changed that could negatively affect the company's future development.
Regarding the fund's performance during the month, the largest positive contributions came from Fairfax Financial Holding, HBH Healthcare Investments, and Investor. At the same time, Berkshire Hathaway, Prosus, and Microsoft also contributed positively.
During the month, the fund increased its holding in Bure Equity.
The managers further write that the discount and premium to net asset value (NAV) is a useful measure for assessing how the market values investment companies and whether the timing for buying or selling is attractive. At the same time, long-term NAV growth is described as the most important factor.
"History can provide some guidance, but of course is no guarantee. When sector sentiment is weak, as it is now, good opportunities often arise for those who are selective. Several investment companies are currently trading at levels that have historically been attractive entry points."
Over the past month, discounts have increased in several companies, including VEF, VNV Global, Spiltan, Lundbergs, and Svolder.
"The weak performance in the real estate market is creating attractive acquisition opportunities for Lundbergs, which has strong financial capacity and low leverage. An increasingly stable real estate market suggests that the discount in Lundbergs will gradually decrease over time."
The largest holdings in the fund at the end of the month were Investor, Berkshire Hathaway, and Svolder, with weights of 7.9, 7.3, and 6.5 percent, respectively.
| Kavaljer Investmentbolagsfond, % | December, 2025 |
| Fund MM, change in percent | 1.0 |
| Fund full year, change in percent | 3.8 |
