The managers begin by noting that the markets continued to recover in May and that the world index rose 5.98 percent in local currency during the month. At the same time, the Stockholm Stock Exchange rose 2.99 percent.
Much of the strength during the month can be attributed to a federal court blocking Trump's sweeping import tariffs, which immediately halted the 10 percent tariffs on the US's trading partners. This is described as one of the biggest legal setbacks for the president and will be appealed.
"The decision may, of course, affect the ongoing trade negotiations that the US has initiated with individual countries and partners. Tariffs must normally be approved by Congress, but Trump has claimed that he has the authority to act because the US trade deficit constitutes a national emergency," the fund managers write.
However, according to the court ruling, the International Emergency Economic Powers Act of 1977 does not apply to tariffs. And even if it did, the US trade deficit does not constitute an "unusual and extraordinary threat."
Furthermore, Nvidia's quarterly report, released during the month, highlights revenues that exceeded expectations. The company expects revenues of around $45 billion in the second quarter.
Regarding future developments, the fund managers write that the market will be driven in the short term by the uncertain global trade policy situation, but also by the geopolitical situation. Inflation, the economic cycle, and interest rates are also described as important factors.
"Despite this, we would like to emphasize that our relatively positive view of the stock market remains unchanged in the longer term. Valuations look attractive in many areas, and if we manage to avert the threat of recession, we see a number of companies that are worth buying."
During the month, Storytel, Smart Eye, Asmodee, Dynavox, and Raysearch contributed positively to performance. Mips and Flat Capital also performed well. On the negative side were Truecaller, Humana, Ambea, and Camurus, as well as the underweight positions in Addnode, Sectra, Avanza, and Betsson.
The fund's largest holdings at the end of the month were Embracer Group, Hanza and Kinnevik, with portfolio weights of 3.6, 3.4 and 3.2 percent, respectively.
| Aktiespararna Småbolag Edge, % | May, 2025 |
| Fund MM, change in percent | 3 |
| Index MM, change in percent | 2 |
| Fund this year, change in percent | 3 |
| Index this year, change in percent | 0 |
