The managers begin by noting that US stock markets rose sharply during the month after it became clear that Donald Trump will be the next US president.
The market is expecting business-friendly policies with deregulation, lower taxes and higher corporate profits with Trump in office.
"While there are some concerns on the horizon with tariffs, trade wars and the risk of overheating and inflation, optimism is currently at its peak and capital is flowing into US stock markets from all over the world," the managers write.
More business-friendly policies in the US are expected to lead to more corporate deals next year and continued strong US stock market optimism. Expectations of US interest rate cuts have been lowered, which means that US interest rates are expected to be significantly higher than European ones.
"We therefore believe that the US dollar will remain strong next year."
The US dollar has strengthened against both the euro and the Swedish krona this month.
In terms of portfolio activity, the fund increased its holdings in American Express, SAAB and Morgan Stanley, and sold ASML, Maersk and LVMH.
Furthermore, the managers point out that the structural trends in which the fund has invested, such as AI technology, US banks and anti-obesity drugs, are expected to develop strongly in 2025, while global armament is increasing with Europe's increased defense responsibilities and continued tension in Asia.
Lower interest rates in Europe are stimulating the investment climate and could accelerate economic activity, creating opportunities for corporate deals, especially in the European defense industry, which is expected to become more cohesive through increased corporate activity.
"The valuation gap between US and European companies has widened over the year, and with the euro and krona weakening sharply against the dollar, there is a discount for US investors looking for bargains in Europe."
The fund's largest holding at the end of the month was Microsoft at 6.3%, followed by Nvidia and Amazon at 5.8% and 5.5% respectively.
Geographical exposure was 66.3% in the US, followed by Sweden and Denmark at 12.1% and 3.6% respectively.
| Tellus Global Investment Company, % | November, 2024 |
| Fund MM, change in percent | 4,7 |
| Index MM, change in percent | 4,3 |
