Kavaljer Quality Focus 08/26 - Strong Month for Equities and Signs of Improving Sentiment Towards Small-Cap Companies

2026-09-11 10:30:00

Kavaljer Quality Focus gained 2.7% in August, compared with 1.9% for the Stockholm Stock Exchange and 2.6% for the small-cap index. The largest positive contributors during the month were Vitec, Brdr. A&O Johansen and Valmet, while RevolutionRace, New Wave and Catella detracted the most from performance.

Improving sentiment towards high-quality small-cap companies
August was a strong month for equity markets, and we are now seeing early signs of sentiment shifting in favour of high-quality small-cap stocks, which have long been overlooked in favour of large-cap companies. Among other things, brokers who previously contacted us primarily with selling interest are now approaching us with buying interest, suggesting that institutional capital is beginning to return to the segment. We are also seeing early signs of an improving economic environment, which we believe could generate long-awaited revenue growth and stronger profitability going forward.
The fund acted in line with this view during the month. The entire holding in Protector Forsikring was divested and the position in Storytel was reduced, while the fund increased its holdings in RevolutionRace, Proact, ITAB, Securitas, New Wave, Firefly and ChemoMetec. At the end of the month, the equity exposure amounted to 99%.

In-depth review of the fund’s holdings
This month’s in-depth review covers, among other topics, the end of the selling pressure in ITAB from John Fredriksen’s company WQZ, Xvivo’s CE marking for its XHAT heart transplantation solution, AOJ’s acquisition of Elektroimportøren and the recovery in Nederman’s order intake. We also examine Catella’s cost savings and expected acquisitions, Carasent’s strong growth in recurring revenue, and the reasons behind our decision to exit Protector Forsikring following substantial insider selling and signs of a softening market.

Read the full monthly report in the attached file.

Disclaimer
Historical performance is no guarantee of future returns. The value of an investment in the fund may both increase and decrease, and it is not certain that you will get back the full amount invested. For more information about the fund, please see the fund’s factsheet at kavaljer.se/en/.

This publication is addressed to clients and other stakeholders of Kavaljer AB (Kavaljer). The information is based on Kavaljer’s own assessments at the time of publication as well as on other sources. However, Kavaljer cannot guarantee that the information from these sources is correct, and the assessments are based on factors that may prove to be inaccurate. Anyone reading the information should be aware that it does not constitute an offer to buy or sell financial instruments or an invitation to engage in such transactions. The information is based on data known to Kavaljer at the time it was published. Assessments and conclusions presented may be subject to change, and such changes may occur without Kavaljer distributing updated information. Kavaljer is not responsible for any loss or other damage (direct or indirect) related to the use of this publication, to investment decisions, or otherwise, nor for any inaccuracies in the publication arising from incorrect or incomplete information from third parties.

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