Following a strong finish on the stock markets in December, the fund managers noted that 2025 was characterized by uncertainty but also a clear recovery. Interest rate cuts, geopolitics, and the dominance of tech companies set the tone, while both the economy and corporate profits developed more strongly than a year ago.
The scenario outlined at the start of the year has largely materialized, according to the managers, with interest rate reductions and an exceptional investment boom in digital infrastructure, data centers, as well as defense, healthcare, and financial services.
The rotation into Nordic small caps continued throughout the year, with the VINX Nordic Small Cap Index climbing 5.6 percent and outperforming the broader market, albeit below historical averages. Performance varied significantly between countries and sectors, with large price dispersion and high volatility, making 2025 a challenging year from a management perspective.
The outlook for 2026-2027 is described as cautiously optimistic. The managers still see risks related to geopolitics, globalization, and high valuations in the U.S., but also assess that an environment with rising GDP and lower inflation bodes well for equities.
"Nordic equities are generally cheap compared to historical levels and to other regions such as the U.S. We see the strongest earnings growth within the small cap segment and believe the valuation gap with large companies will continue to close in the coming years," the report states.
The management also sees clear signs that M&A activity has picked up again. For example, Telia's acquisition of Bredband2 is highlighted, where the fund was long when the bid was made. Along with Norva24, this means the portfolio was positioned in two takeovers during the year.
The main contributors to returns during the month were Greater Than, Biogaia, and Dynavox, while negative contributions came from Chemometec and Paradox.
Over the past year, the best performers were Hanza, Dynavox, and Raysearch. On the negative side were Profoto, Paradox, and NNIT.
Turning to the short side of the portfolio, the batting average (share of correct theses) is reported to have reached 65 percent during the year. The most successful positions included Yubico, Surgical Science, Trucaller, Cint, Zinzino, and Intellego. Saab and Norion were among the weakest contributors.
The fund's largest holdings at the end of the month were Dynavox, Biogaia, Elekta, Chemometec, and Carasent.
| Origo Quest, % | December, 2025 |
| Fund MM, change in percent | 0.5 |
| Fund full year, change in percent | 10.1 |
