Strong Market Performance
May was characterized by broad-based equity market gains, with the Stockholm Stock Exchange (OMXSPI-GI) rising 3.4% and the global equity market (Dow Jones Global Index) advancing 4.8%. Kavaljer Investmentbolagsfond delivered a positive return of 2.1% during the month and has generated a total return of 138% since inception, compared with 135% for the Stockholm Stock Exchange and 111% for the global index.

Increased Frequency of Acquisitions and Take-Private Transactions
Sweden has been in an economic downturn since 2022–2023, and the stock market has rewarded momentum companies—businesses whose earnings and share prices are on a clear upward trajectory with high valuation multiples. At the same time, well-managed companies experiencing temporarily depressed earnings have been penalized. This combination creates attractive conditions for acquisitions.

In-Depth Perspectives on Our Portfolio Holdings
In this month’s newsletter, we take a closer look at several of the most significant developments among the fund’s holdings. Beijer Alma completed four acquisitions within a two-week period, including one in Finland, significantly increasing its M&A activity while maintaining a strong financial position. Latour announced the sale of shares in Assa Abloy and Securitas with a combined value of SEK 5 billion. The purpose is to free up capital for continued investments in its unlisted industrial operations, a strategic decision that we analyse and place in a broader long-term context.
We also present an in-depth review of Danaher, the U.S.-based serial acquirer within life sciences and diagnostics. The company is currently trading at what we believe are historically low valuation multiples based on recession-level earnings, and we outline our view on the company’s normalized earnings power and long-term potential.
The monthly newsletter also includes updates on Bure Equity and Vitec.

Read the full monthly report, including detailed company comments and additional insights, in the attached document.