Initially, the managers note that Swedish large-caps fell significantly in March and that the broad Stockholm Stock Exchange retreated 7.5 percent, while the world index fell by 7.6 percent. The small-cap index also saw a negative trend, falling 5.6 percent.
"The stock market month was characterized by the conflict between the US/Israel and Iran, the associated blockade of the Strait of Hormuz, and the destruction of oil infrastructure throughout the Middle East. The latter two factors have created higher oil and energy prices, which risk fueling inflation," the managers write.
They add that one should not try to predict the macroeconomy, but instead focus on how events affect individual companies. The war in Iran creates uncertainty that causes major investments to be postponed, which can weigh on some companies' profits. On the other hand, companies with recurring revenues fare better.
"When the stock market shakes during macroeconomic unrest, all companies are often painted with the same brush, causing all stocks to be pulled down with similar magnitude. We take advantage of this to increase positions in companies whose operations are likely to remain stable even in uncertain times."
During the month, holdings in Fairfax Financial Holdings, HBM Healthcare Investments and Linc contributed positively, while Ratos, Latour and Svolder weighed most heavily on performance.
Ratos is described as transitioning into a pure-play investment company with a focus on NAV reporting and a broader investment mandate. At the same time, new financial targets are being introduced, consisting of 5 percent annual growth and improved profitability.
The company's focus in the coming years is described as selling consumer companies, while core holdings such as Diab Group, HL Display, Knightec and Presis Infra are expected to drive growth. In the long term, there is also assessed to be potential for further IPOs for several of the holdings.
Regarding portfolio activity, holdings in Investor, Industrivärden and Fairfax Financial Holdings were reduced, while positions were increased in Beijer Alma.
At the end of the month, the fund's three largest equity holdings were Berkshire Hathaway, Investor and Svolder, with portfolio weights of 8.0, 7.5 and 6.3 percent respectively.
The largest sector was finance, which accounted for 79 percent of the portfolio, followed by technology and industrials at 6 and 5 percent respectively.
Sweden accounted for the largest part of the geographical exposure with 58 percent of allocated capital, followed by the USA and Canada, which together accounted for 26 percent.
| Kavaljer Investmentbolagsfond, % | March, 2026 |
| Fund MoM, change in percent | -5.2 |
| Fund YTD, change in percent | -9.5 |
