The managers begin by noting that the Stockholm stock exchange fell 1.2 percent in December and that the total return for 2024 was 8.6 percent.
"Globally, the return was clearly higher for the full year, driven by the so-called 'Magnificent Seven' companies in the US, which together rose more than 70 percent during the year. The global return in the stock market was -1.0 percent in December and remained at 30.9 percent for the full year 2024 (converted to SEK)," the managers write.
During the month, both smaller and larger companies performed negatively on the Swedish stock market, but for the year as a whole, small companies outperformed large companies slightly.
Furthermore, the managers believe that the global economy is bottoming out. They believe that 2025 will be a volatile year, but that both the economy and the long-term earnings outlook will improve.
The holdings that contributed most positively during the month were Avanza, Vitex and AAK, while Nibe, Balder and Beijer Ref weighed on performance.
In terms of portfolio activity, the fund increased its holdings in Lagercrantz, Avanza and Trelleborg in December. The latter is described as having undergone a major change over the past 10 years, where the company has streamlined its operations and increased exposure to more attractive growth segments.
"In combination with continued share buybacks and a relatively low level of debt, Trelleborg's transformation journey is something we see continued potential in," the managers write.
The fund has also reduced its holdings in Getinge and Husqvarna.
"Husqvarna's profitability and growth have not yet played out as we expected. In addition to poorer profitability and growth in the recent period, we see a risk that the company will lose its position in robotic lawn mowers and electrically powered products, which have previously been the company's growth hope."
Finally, the managers write that they will keep an eye on economic developments in the immediate area and especially in Germany. The country is explained to be an important trading partner for many companies in Sweden and the development is described as important for profits to turn up in 2025.
The fund's largest holdings at the end of the month were AAK, Addtech and Securitas with weights of 5.4, 5.2 and 5.1 percent respectively.
Meanwhile, industrial goods, information technology and real estate were the largest sectors with weights of 45.6, 18.1 and 12.1 percent respectively.
Cliens Small Cap A, % | December, 2024 |
Fund MM, % change | 0,04 |
Index MM, % change | -0,26 |
Full year fund, % change | 10,5 |
Full-year index, percentage change | 8,8 |