In January, large-cap stocks continued to outperform small-caps. The broad Stockholm Stock Exchange rose by 2.1 percent, while the large-cap index increased by about 5 percent. Global markets also performed well, with the world index climbing 3.1 percent. In contrast, the small-cap index lagged significantly, dropping by 4.2 percent.
The managers note that, in the short term, the market is often driven more by sentiment than by fundamentals, with different segments favored at different times. When a segment temporarily falls out of favor, share price declines can quickly sow doubt, even though the underlying companies' business models and long-term prospects remain unchanged.
"But in the end, a quality company is still a quality company. A strong business model, durable competitive advantages, solid capital allocation, and management that creates value over time do not simply disappear because sentiment shifts. On the contrary, it is often when a good company is overlooked that long-term investors have the best opportunities – provided the fundamentals remain intact," the managers write.
They also add that price matters as well, but that returns over time tend to follow companies' earnings growth.
Among the holdings that contributed most positively during the month were Industrivärden, Investor, and HBM Healthcare Investments, while Fairfax Financial Holdings, LVMH, and Berkshire Hathaway weighed most heavily on the fund's performance.
During the month, exposure to Markel, Fairfax Financial Holdings, LVMH, Industrivärden, Danaher, Investor, and Berkshire Hathaway was reduced. At the same time, positions in Svolder and Latour were increased. The fund also exited its holding in Sdiptech.
The managers highlight Latour in particular, describing it as well-positioned for the coming years. After a weak 2025, in which the industrial cycle pressured several of Latour's industrial companies, the managers now believe expectations are set low. They point to cost efficiencies, strong pricing power, and financial strength as factors that could improve results when demand picks up.
The fund's largest holdings at the end of the month were Investor, Berkshire Hathaway, and Svolder, with portfolio weights of 7.8, 6.9, and 6.7 percent, respectively.
| Kavaljer Investmentbolagsfond, % | January, 2026 |
| Fund MoM, change in percent | -6.5 |
| Fund one year, change in percent | -4.0 |
