Large-cap rally continues, mixed performance for small capsFebruary saw continued very strong performance for large-cap indices, while small-cap indices only showed a modest rebound – with large variations between companies. The broad Stockholm Stock Exchange (OMXSPI-GI) rose by 4.5% and the global index (Dow Jones Global Index) by +1.5%.

At the same time, the rise in the Stockholm stock market has not been broad. Only about 30% of the stocks in OMXSPI have risen this year. Despite the feeling that “the market is rallying”, the majority of Swedish stocks are therefore down so far this year.Fund flows create a record-wide discrepancy in company valuationsSince mid-last year, large outflows from small-cap funds have created forced selling pressure, where funds are compelled to sell shares that they are actually positive about. Every forced sale in illiquid small caps has a significant impact, as the buy side already consists of battered retail investors who no longer have the appetite to “buy the dip” – resulting in particularly large movements on earnings days.

Serial acquirers operationally strong but held back by multiple contractionMany small-cap funds have been overweight in serial acquirers, which has made these companies “liquidity cushions” during fund outflows. Operationally, however, Swedish serial acquirers are showing underlying resilience, with a cautiously improving market environment, good organic order intake, and improving margins.

Large swings in NAV discounts among investment companies create opportunitiesThe past year has seen large swings in NAV discounts/premiums among listed investment companies. While the ability to grow net asset value over time remains the most important criterion, the timing of NAV discounts can be an important factor for generating excess returns. Investor, for example, is currently trading at a record-low discount while its three largest listed holdings (ABB, Atlas Copco and Saab) are trading at record levels.

While we are therefore taking the opportunity to reduce our position in Investor, we see opportunities elsewhere – not least in Latour, whose valuation is lower than it has been for many years, while its holdings remain fundamentally strong.

Read the full monthly report with company comments and more in the attached file.

DisclaimerRisk informationHistorical 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.

About UsKavaljer ABVisiting Address: Cylindervägen 12, 9th floorBox 1221, 131 28 Nacka Strand, SwedenPhone: +46 8 684 393 00Email: info@kavaljer.se

AttachmentsKavaljer Investmentbolagsfond February 2026