The managers begin by noting that May was a strong month on the Nordic stock markets, which recovered from the sharp declines in April. The tariffs announced in April have now been reduced, although negotiations with the EU are still ongoing.
All portfolio companies have now reported for the first quarter, and overall the reports are described as positive. For the portfolio as a whole, revenue growth was 4.5 percent, of which 3 percent was organic. Operating profit increased by 6 percent and earnings per share by 7 percent. Cash flow also increased by 7 percent.
"At the same time, it is clear that several companies are expressing some caution about the future, mainly due to the uncertainty surrounding US trade policy. However, most of our portfolio companies with operations in the US also have local production there, which means that the impact of any tariffs will be limited."
The fund manager also writes that Novo Nordisk's CEO was dismissed during the month, which is described as surprising. The reason is said to be the share price and sales performance in the US.
"Competitor Eli Lilly has performed significantly better, and so-called 'compounders' – companies that manufacture semi-generic drugs – have gained market share. These have now lost the right to sell in the US, and Novo has signed several agreements to gain access to the market where patients pay out of their own pockets."
According to the fund managers, one of Novo Nordisk's mistakes has been to rely too heavily on the insurance-financed part of the market. This segment has performed poorly because more than 30 percent of the US population is overweight and insurance companies have therefore been unwilling to cover the costs. The company has now taken action and, with a more aggressive strategy in the US, is believed to be able to strengthen its position going forward, and its valuation is therefore described as attractive.
In terms of portfolio activity, the fund added Astra Zeneca during the month, whose share price has fallen somewhat recently. The fund managers consider it an attractive investment given its strong outlook and low valuation.
The fund's largest holdings at the end of the month were Novo Nordisk, Protector Forsikring, and DVS, with portfolio weights of 5.78, 5.11, and 4.76 percent, respectively.
| Odin Norden, % | May, 2025 |
| Fund MM, change in percent | 3.1 |
| Index MM, change in percent | 3 |
| Fund this year, change in percent | -2 |
| Index this year, change in percent | - |
