The managers initially noted that March was characterized by geopolitical tensions in the Middle East and a broad market downturn that also impacted Swedish small-cap stocks. Despite this, the small-cap segment performed slightly better than large-caps, partly due to higher domestic exposure.
Monthly performance was primarily driven by strong contributions from holdings in Nordnet, Asker Healthcare Group, Lime Technologies, Avanza, and Sectra. These companies contributed positively to relative returns. Conversely, performance was weighed down by holdings in Catena, Invisio, and Electrolux Professional.
In conjunction with the weak market performance, exposure was increased in several existing holdings. Two new companies were also added to the portfolio: Synsam and Apotea.
Synsam is highlighted as a stable company with a proven subscription model that has shown resilience in a more uncertain economic climate, while technological developments within the Eyeview system are expected to contribute to more efficient operations over time.
Apotea has been monitored since its IPO but was previously considered highly valued. Following a share price decline and a profit warning, the valuation has come down, while early signs of stabilized demand are becoming visible.
The portfolio was further adjusted by increasing positions in Bahnhof, Gränges, Mips, and RVRC, while minor holdings in Alleima and Billerud were divested.
Geopolitical uncertainty is described as having raised the risk premium in the short term, but historically, corporate earnings growth has been the primary driver of long-term stock market returns, according to the managers. The valuation gap between small and large Swedish companies is also unusually wide, which historically has often been followed by periods where small-caps have shown relative strength. Small-caps' domestic exposure could thus provide support as focus shifts back toward the Swedish economy.
At the end of the month, the fund's three largest holdings were Securitas, Sagax, and Addtech, with portfolio weights of 4.04, 3.78, and 3.75 percent, respectively.
The fund had its largest sector exposure to industrials and real estate, with weights of 37.05 and 17.08 percent, respectively.
| Länsförsäkringar Småbolag Sverige Vision A, % | March, 2026 |
| Fund MTD, change in percent | -5.15 |
| Index MTD, change in percent | -5.58 |
| Fund YTD, change in percent | -8.13 |
| Index YTD, change in percent | -7.64 |
