INSTALCO AB Initially, the manager highlights that the fund sold its holding in Nordic Waterproofing during the month, where it has been an owner since 2017.
"In the summer of 2022, the two largest owners sold their shares to Irish Kingspan at a substantial premium. Good for them, but bad for the other owners. With those shares as a base, Kingspan has since gradually increased its holding and is now close to 90 percent according to our assessment," the manager writes and continues.
"We do not want to end up in a forced redemption situation and are therefore selling our shares. The positive thing is that we are selling the shares well above Kingspan's bid last year, the negative thing is that the price level does not really reflect the company's full value. This is sometimes the case, and we wish the company good luck with its new owner."
Instead, the fund has added Instalco to its portfolio, which is said to be a new holding. What is said to have happened since it last owned the stock is that the construction market has been weak and the manager believes that the company may have made a few too many acquisitions.
Although the share price has developed negatively, Henriksson believes that Instalco is a fine company that has mainly made qualitative acquisitions in installation and technical consultants.
"Construction activity is still weak, but judging by our indicators it is not getting weaker. Overall, we believe that the outlook for the construction sector, combined with the share's valuation, represents an attractive level at which to re-enter ownership."
The largest holdings in the fund's portfolio at the end of the month were TF Bank, AQ Group and Medcap, with weights of 14.3, 7.2 and 6.2 percent respectively.
| Carnegie Micro Cap, % | November, 2024 |
| Fund MM, change in percent | -1,96 |
| Fund this year, change in percent | 14,65 |
