The stock market year started weakly for Swedish small caps, according to the managers. This continued the trend seen at the end of 2025, when small caps underperformed larger companies.
The managers state that the reasons behind this relative weakness are not entirely clear. However, some larger companies are considered to have had greater exposure to high-demand segments, such as data centers. At the same time, it is noted that small caps are currently valued lower than large caps, a phenomenon historically seen mainly during periods of weak risk appetite.
Quarterly reports so far have shown marginal organic growth, but significant currency headwinds due to a stronger Swedish krona. The managers argue that it is difficult to identify any clear, broad-based economic improvement, and the environment is described as remaining subdued.
Among the positive contributors highlighted are HMS, Nordnet, and Axfood.
HMS reported organic order intake growth of 3 percent. Thanks to strong deliveries, organic sales growth reached 23 percent, while margins improved and profits increased more than sales.
Nordnet is said to have continued profitable growth. Earnings per share rose 19 percent during the quarter, while the number of customers increased by 12 percent and savings capital by 15 percent. The managers particularly highlight the planned launch in Germany as an important factor going forward.
Axfood reported sales growth of 4 percent and an increase in adjusted operating profit of 13 percent. The managers note that improvement efforts at the acquired City Gross are having an effect and are gradually strengthening profitability.
On the negative side were Indutrade and Hexpol.
Indutrade saw a slight increase in order intake and reported largely unchanged organic sales, but operating profit fell by 10 percent. The decline is explained by costs related to two British projects, which the company's management says are one-off in nature.
Hexpol was affected by continued weak demand from passenger car customers. Organic sales declined by 3 percent and adjusted operating profit fell by 19 percent, as the company, according to the managers, took on volumes with lower profitability to maintain capacity utilization.
Regarding portfolio activity, the fund increased its holdings in HMS and NP3. Conversely, exposure to Rongkjøbing Landbobank and Axfood was reduced, explained by higher valuations as investors have favored more defensive companies.
The largest holdings in the fund at the end of the month were Addtech, Lagercrantz, and Lifco, with weights of 8.7, 7.4, and 7.0 percent respectively.
| Lannebo Small Cap, % | January, 2026 |
| Fund MM, change in percent | -7.6 |
| Index MM, change in percent | -4.2 |
