At the end of the month, the fund's five largest equity holdings were Storytel, Dynavox, Byggmax, Xvivo Perfusion, and Inwido.
The biggest positive contributors during the month were Arjo, Inwido, Byggmax, Storytel, Troax, and Nederman.
On the negative side, Yubico, Lime, NCAB Sveafastigheter, and Mildef had the greatest impact.
The year-end was positive, but market developments continued to be characterized by a narrow breadth, with only a few sectors driving the gains. Banks, commodity companies, welfare companies, defense firms, and some consumer companies performed strongly, while small caps as a group were weighed down by outflows from small-cap funds.
The fund managers note that low trading volumes in smaller companies contributed to significant price swings on both positive and negative news. This has given short sellers greater influence over price developments in the segment.
The Swedish economy is expected to head for brighter times in 2026. GDP growth reached 2.6 percent in the third quarter of 2025 and remained just over 2 percent in both October and November. Forecasts for 2026 range between 2.4 and 3 percent, with increased private consumption being a key driver.
Against this backdrop, the fund highlights companies with exposure to Swedish consumption as an investment theme. Byggmax is cited as an example, with some of this development already reflected in its share price. The fund also sees potential in the consulting sector but is awaiting clearer improvements in company reports.
A new holding during the period is Scandic Hotels Group.
"We believe the company will benefit from consumers' improved finances. Scandic has about 30 percent of its operations in Sweden, which we view as positive. The acquisition of hotel operations Dalata Hotels Group in the United Kingdom and Ireland will have a positive impact on the company through management agreements, especially from the end of 2026 when it is fully consolidated into Scandic. We therefore see at least two years of strong earnings growth, and an adjusted P/E ratio of 11-12 based on the 2026 earnings forecast is, in our view, too low. We have acquired an initial small stake and plan to increase this once we have further confirmation of the positive development."
Looking ahead, the fund expects an economic upturn and anticipates relatively strong earnings growth in both 2026 and 2027.
The equity allocation was 78 percent at the end of the month.
| Strand Small Cap Fund, % | December, 2025 |
| Fund MoM, change in percent | 1.25 |
| Index MoM, change in percent | 1.18 |
