Kavaljer Investmentbolagsfond July 2026 – Strong Earnings Season and a Promising Economic Turnaround

Good summer month
July was a strong month for the Swedish stock market, with the Stockholm Stock Exchange (OMXSPI-GI) rising by 2.2%, while the world index (Dow Jones Global Index) developed somewhat more weakly, at -0.2%. Kavaljer Investmentbolagsfond delivered a positive return of 2.8%.

Strong earnings season and a promising economic turnaround
The second-quarter earnings season was overall strong for the fund's portfolio companies, with BB Biotech, HBM Healthcare, Lifco, and Ratos standing out in particular. We are also seeing clear signs of a broader economic turnaround, including a sharply increased pace of acquisitions among listed serial acquirers. A particularly interesting observation is that Investor and Industrivärden are now trading at a premium to net asset value, a situation that, as far as we know, has never previously occurred.

Closer look at our holdings
In the letter, we go through several of the fund's holdings: Beijer Alma, which continues to improve profitability; BB Biotech and HBM Healthcare, which are benefiting from a clear recovery in healthcare; Danaher, which fell sharply following a disappointment in its Biotechnology segment, though underlying markets continue to improve; Latour, where Industrial Operations shows signs of recovery; Lifco, with rising organic growth; LVMH, which shows several signs of a possible turnaround; and Ratos, which delivered a strong report paving the way for a re-rating of the stock.

Read the full monthly letter in the attached file.