The Chelonia Select fund rose 0.36% in December. During the past full year, the fund rose 21.6 percent. This is stated in a monthly report from the fund's manager Magnus Angenfelt.

In the introduction, the manager writes that most stock markets fell in December. For the fund, the largest contributions came from the long position in Alphabet, as well as from Hanza, Byggmax and VBG.

"2024 was the best year so far for the Fund. As we mentioned earlier, the return of 21.6 percent has been produced with a low equity risk, that is, the net exposure to equities during the year has only been about 25 percent," the manager writes and continues:

"The most gratifying thing is that the year's return has been achieved in a number of stocks/companies with precisely low risk."

The manager cites the example of care company Ambea, whose shares have risen nearly 90% during the year, including dividends.

"There is certainly a political risk, but with the rising need for nursing homes, and the absence of municipalities' forward planning to meet demand, we do not consider the danger to be imminent."

It adds that the risk of bad debt is low because municipalities are the customers, and that volatility is low and predictable.

The fund's second largest holding, Securitas, is highlighted as another example. The share has risen 43 percent during the year, which is described as remarkable for such a defensive company.

"Securitas' valuation also looks attractive for 2025. Single-digit earnings multiples and almost double-digit free cash flow relative to market capitalization are not high for a company that is growing and is about to acquire moats against its competitors. Especially since Securitas belongs to the exclusive group that will not be affected by either higher tariffs or competition from China."

During the year, Essity has also risen 22 percent, which is described as having been both three times better than the major company index OMXS30 and at a low risk.

However, the company that contributed most positively during the year was Hoist, which is a more volatile stock than the aforementioned.

"One of the reasons is erratic regulation by the authorities. But valuation, strategy and management are more important in this case. Here, too, we believe there is more to be gained in terms of price in the coming years."

In conclusion, the manager writes that short positions, especially in Swedish real estate, grocery retail, European cars and Danish health care, have also been favorable during the year. The short position that contributed most positively in 2024 was Nike, which fell 29 percent over the year.

"Despite the gains over the year, we think there is plenty of dry powder in the portfolio for 2025."
Chelonia Select, %December, 2024
Fund MM, % change 0,36
Full year fund, % change 21,6