Kavaljer Investmentbolagsfond October 2026 - Stronger Industrial Signals, Increased Holdings in Latour and Svolder

October was a mixed stock market month, with the Stockholm exchange rising while the world index fell. Kavaljer Investmentbolagsfond rose 0.4%. Concern about the large AI investments and developments in the Middle East marked the market, while the reporting period brought large share price moves in several of the fund’s holdings.

The reports from, among others, Ratos, Beijer Alma, Thermo Fisher and Danaher were strong, while Lifco and Alphabet fell sharply after their reports. At the same time, the industrial cycle continues to show signs of improvement. The positive trend that was visible during the second quarter has held up, and Swedish industry showed in October the highest level in the purchasing managers’ index since the beginning of 2022. In Life Science Tools, too, we see a clearer recovery, with improved sales, order intake and customer activity.

During the month the fund increased its holdings in Latour and Svolder, two companies with large exposure to an industry on its way up. At the same time the holdings in Investor, Thermo Fisher, Danaher and Markel were reduced, and the holding in Vitec Software was sold in its entirety. Among the month’s largest positive contributors were Fairfax Financial, Latour and Ratos.
In the monthly letter we go deeper into, among other things, Ratos’ strong development and low valuation, Beijer Alma’s improved margins, the recovery in Life Science Tools and our view of Lifco after the news of a larger customer loss. We also discuss Alphabet, where a strong quarter was overshadowed by the market’s concern about the pace of investment and how AI may affect Google’s core search business.

Read the full monthly report in the attached file.