Kavaljer Quality Focus fell 0.9% in September, compared with -1.6% for the Stockholm exchange and -1.3% for the small-cap index. The largest positive contributors during the month were Storytel, ITAB and Bravida, while Xvivo, RevolutionRace and Huhtamäki contributed most negatively.

A Step Back Caused by High Oil Prices
September was a somewhat weak stock market month. Continued turmoil in the Strait of Hormuz has pushed up oil prices, which has raised inflation expectations and global interest rate levels. Interest-rate-sensitive sectors such as financials and real estate, as well as highly valued growth companies, took the biggest hit, while energy-related stocks held up best.
At the same time, there are increasingly many signs that the industrial cycle is improving. Order intake rose in the second quarter for several industrial companies, and September data points in the same direction. In Sweden, conditions are improving both in industry and among households, where confidence is the highest since December 2021. Just over 40% of the fund's portfolio is invested in industrial suppliers - high-quality companies with underutilized factories and squeezed profitability, where a recovery in volumes should bring both revenue growth and operating leverage.
During the month the fund sold its holding in Vitec and reduced its positions in Storytel, Proact, Bravida, Pandora, Brdr. A&O Johansen, Carasent, BTS and Huhtamäki. We bought back an old favorite, VBG Group, and increased our positions in Nederman and ITAB.

The equity allocation at the end of the month was 98%.

In-Depth Look at the Fund's Holdings
In this month's in-depth section we go through why we judge the AI threat to Exsitec to be overstated: only around 10% of working time is spent on coding, and lower project costs may in fact increase demand rather than reduce it. We also describe the buy-back of VBG Group, where the large facility investment in MTS is completed this year and is expected to bring cost savings from Q1 next year, with full effect in 2027. Finally, we look at ChemoMetec, the market leader in cell counting for cell and gene therapy with around 90% market share, a high share of recurring revenue and a new growth leg in Bioprocessing.

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.

Contact us
Kavaljer AB
Visiting Address: Cylindervägen 12, 9th floor
Box 1221, 131 28 Nacka Strand, Sweden
Phone: +46 8 684 393 00
Email: info@kavaljer.se

About Kavaljer Funds
Kavaljer offers asset management services for private individuals, companies, institutions, and foundations. With over 30 years of experience, the goal is to generate long-term and stable returns through funds and discretionary portfolio management.

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Quality Focus September 2026 En