The managers initially note that the equity market remained heavily news-driven in March, where an escalating conflict in the Middle East contributed to increased concerns regarding energy supply. Oil, measured as Brent, rose to as high as 112 dollars per barrel, representing a doubling since the start of the year.
At the same time, leading stock exchanges are described as having reacted negatively to the news flow and uncertainty surrounding political signals. The market also shifted its focus toward rising inflation risks, resulting in previous expectations of interest rate cuts being replaced by a "higher for longer" outlook.
At the sector level, energy performed strongly while technology and AI were weak. The global index fell 5.9 percent during the month. Nordic exchanges partially followed the decline, with the exception of the Oslo Stock Exchange, which rose 11.8 percent driven by energy companies.
Regarding the fund's performance, a profit warning from the Danish medtech company Chemometec had a negative impact. The managers state that the timing of the position was flawed from the outset. However, their view remains unchanged, and at the current valuation, they see an attractive risk/reward profile on a two-year horizon.
Holdings within consumer cyclicals, such as MTG, Harvia, and New Wave, also performed poorly in the wake of global unrest and outflows. Positive contributions came from Hanza, Biogaia, and FLS.
The fund lacks exposure to oil, gas, and shipping, which contributed to the relative underperformance.
In periods such as these, the management emphasizes the importance of maintaining focus instead of being drawn into oversimplified and highly speculative trades. They highlight an investment philosophy established since the 1980s, arguing that the most important conclusion is to continue viewing market behavior from an analytical rather than an emotional perspective.
Furthermore, portfolio companies are generally considered to have reported strong figures for the latest quarter, with a 32 percent increase in revenue and an 8 percent improvement in earnings. The 15 largest holdings exceeded expectations but have nonetheless fallen by approximately 9 percent on average, which is described as reflecting weak risk sentiment.
During the period, holdings in Nolato, Medicover, SmartCraft, and Matas were divested due to a deteriorated risk-return potential. Meanwhile, the holding in Ringkjøbing Landbobank was increased following a share price decline, as the company demonstrated continued solid growth and cost efficiency in its report.
The fund has also invested in a new niche bank with a low valuation and good growth prospects, and has increased exposure within the healthcare sector, including SOBI, RaySearch, Elekta, and Dynavox. For these companies, earnings growth of approximately 20 percent is expected in the coming years, driven by both sales growth and margin expansion.
The largest holdings in the fund's portfolio at month-end were Biogaia, Hanza, Kalmar, Elekta, and MTG.
| Origo Seleqt C, % | March, 2026 |
| Fund MTD, change in percent | -4.8 |
| Fund YTD, change in percent | -9.7 |
