Kavaljer Quality Focus July 2026 – Value-Creating Structural Deals in the Portfolio

Kavaljer Quality Focus July 2026 – Strong Earnings Season and a Promising Economic Turnaround
Kavaljer Quality Focus rose by 4.1% in July, compared with 2.2% for the Stockholm Stock Exchange and 2.5% for the small-cap index. The second-quarter earnings season was overall strong for the fund's holdings, with Carasent, Storytel, Bravida, Inwido, Ratos, and Huhtamäki, among others, standing out positively. A few reports were received more weakly by the market, but we consider these weaknesses to be temporary in nature and have used the share price declines to increase our holdings.

Structural deals and improved earnings momentum
During the month, several value-creating structural deals in the portfolio were completed or announced. Telenor acquired a majority stake in Bahnhof and indicated a bid for the remaining shares, Valmet is considering splitting its operations into two listed companies, while RevolutionRace and Brdr. A&O Johansen carried out significant acquisitions.

Several reports also confirmed our view that earnings momentum among portfolio companies is improving. Many of the holdings are still trading at low earnings multiples despite pressured profitability. A combination of revenue growth, margin improvements, and rising valuation multiples could therefore create significant value in the portfolio.

A closer look at the fund's holdings
This month's deeper analysis covers, among other things, Idun Industrier's acquisition model, RevolutionRace's acquisition of ICANIWILL, Brdr. A&O Johansen's bid for Elektroimportøren, and developments at Swedencare and Proact. We also analyze Valmet's potential split, which we believe could unlock significant value.

Read the full monthly report in the attached file.