The PriorNilsson Evolve Global fund rose 0.08 percent in February, underperforming its benchmark index which climbed 4.3 percent. Since the turn of the year, the fund has decreased by 1.67 percent, trailing the index which has increased by 7.5 percent, according to the monthly report.

The managers initially note that the fund was weighed down by its overweight position in Swedish small-caps, which had a weak month in contrast to global small-caps.

Positive contributions to returns came from Kitron, Inission, API Group, Installed Building, and OEM International.

The most negative contributions came from Enity Holding, Medpace Holdings, Arctic Falls, Intapp, and Beijer Alma.

Regarding portfolio activity, the fund increased its holdings in Asker Healthcare, Blue Bird, Deckers Outdoor, Donaldson Co, and Inission. Meanwhile, positions in API Group and Arctic Falls were reduced. Additionally, the fund sold its entire holdings in Intapp and Robertet.

The managers observe that most portfolio companies have now reported for the fourth quarter. They describe how even companies delivering in line with or above expectations have, in several cases, been poorly received by the market. This is partly explained by continued outflows from small-cap funds, which puts pressure on valuations in the segment and amplifies price movements.

"During the period, we have seen unusually large price reactions to relatively small deviations from expectations, especially on the downside," the management team writes.

The largest equity holdings in the fund's portfolio at the end of the month were Beijer Alma, OEM International, and Medcap, with portfolio weights of 7.1, 6.7, and 6.0 percent, respectively.

PriorNilsson Evolve Global, %February, 2026
Fund MM, change in percent0.08
Index MM, change in percent4.3
Fund YTD, change in percent-1.67
Index YTD, change in percent7.5