The managers begin by stating that the stock markets continued to rise during the period, despite the continued focus on trade tariffs. The managers believe that the market is increasingly ignoring the rhetoric, as the pattern is recurring with initial threats followed by retreats.
Economic signals in the US, Europe, and China were surprisingly positive, particularly in consumption, despite continued weak consumer expectations. Lower inflation and strong labor markets are highlighted as explanations for the positive development.
The fund managers note that the Swedish market performed weaker than the rest of the Nordic region, where Denmark was the strongest performer. Small-cap companies underperformed large-cap companies. At the same time, earnings forecasts for Nordic companies, especially Swedish ones, have been adjusted downward, partly due to the strengthening of the Swedish krona.
Rising share prices combined with falling profit forecasts have pushed up valuations, particularly for cyclical companies. The fund managers see some upside potential, but consider it more limited than previously.
"We reduced our equity allocation from 90 percent in April to 82 percent at the end of May as a result of less attractive valuations. This means that we still have a relatively high equity allocation and expect the stock market to be higher at the end of the year than it is today, but we see less upside than before. We have also reorganized our stock selection and reduced our exposure to cyclical industries and increased it in the pharmaceutical sector," the fund managers write.
The largest new investments were Novo Nordisk and Sagax. Novo Nordisk is considered undervalued by the market, despite strong growth and profitability prospects. Sagax is believed to have the potential to exceed market expectations, based on its historically low valuation.
The fund sold its entire holdings in Sandvik and Electrolux in connection with the reallocation away from cyclical industries.
At the end of the month, the fund's largest holdings were Nordea, Handelsbanken, and Investor, with portfolio weights of 6.8, 6.3, and 5.5 percent, respectively.
| Lannebo Mixfond Offensiv, % | May, 2025 |
| Fund MM, change in percent | 2.6 |
| Index MM, change in percent | 2 |
| Fund this year, change in percent | 3 |
| Index this year, change in percent | 1 |
