Adrigo Monthly Report December 2025

Performance

Adrigo Small & Midcap L/S Class A and Class C rose by 3.0% during December after fees. The Carnegie Small Cap Return Index Nordic increased by 1.5% in December. The year was challenging for the fund, to say the least, and the negative return of -13.3% was due to very weak share price performance in three of the fund’s holdings. Excluding these, the fund’s return would have been clearly satisfactory. 

The year was challenging for the fund and the negative return of -13.3% was largely due to weak share price performance in three of the fund’s holdings. Excluding these, the fund’s return would have been satisfactory.

For December, among the fund’s larger holdings, Online Brands (e-commerce), Pierce Group (e-commerce) and Hansa Biopharma (pharmaceuticals) made strong contributions. Among the fund’s small and mid-sized positions, we noted good contributions from Dometic (consumer durables) and Paxman (medical technology). The fund’s short positions as a group had a negative impact on performance.

Adrigo Small & Midcap L/S Class A has, since inception and after fees, returned 46.6%. Over the same period, the comparison rate STIBOR 1M has returned 9.7% and the Carnegie Small Cap Return Index Nordic (not a benchmark index) has returned 110.7%.

Market Overview

Global equity markets showed mixed performance during December. Korea and Taiwan were among the strongest markets, rising by 10.4% and 5% respectively. The Euro Stoxx 50 advanced by 2.3%, while the S&P 500 recorded a modest increase of 0.1%. The Nordic markets were strong, with Finland and Norway leading with gains of 4.9%. Denmark rose by 4.0%, while the Swedish market increased by 2.6%. Small-cap stocks once again underperformed larger companies, with Swedish small caps (CSX Sweden Small Return) rising by 0.3% compared with the OMXS30, which rose by 3.4%.

Companies and Performance Highlights

The Hansa Biopharma share showed high volatility during the month. The outcome of the GOOD-IDES-02 study, a phase 3 study for the treatment of anti-GBM, was negative. This caused a sharp decline in the share price, despite the potential from the indication being modest. Far more important was the news that the company had submitted a BLA application to the FDA for imlifidase for desensitisation in kidney transplantation. The application is based on the very strong results from the company’s phase 3 study ConfldS, which were reported at the end of September. The FDA has previously granted Fast Track and orphan drug designation, and the company has now requested priority review, which would imply a six-month review cycle compared with the standard ten to twelve months. There is therefore a good possibility that Hansa Biopharma could launch the product in the US as early as 2026. In previous monthly letters, we have described the significant potential of the product, as the patient population currently has virtually no relevant treatment alternatives. Chief Executive Officer Renée Aguiar-Lucander is highly decisive, and in December the company carried out a reorganisation of the European commercial organisation, which should strengthen sales of IDEFIRIX (imlifidase), which to date have not met expectations. While the relatively low sales figures are largely due to a pause in the German Eurotransplant Prioritized Program and challenges related to reimbursement levels in Spain, we also believe that the company’s own strategy has had shortcomings. However, this strategy originates from the period before Aguiar-Lucander assumed her role on 1 April 2025.

We have on several occasions been invested in Frontline (shipping), and the share is, after Bonesupport, the fund’s second largest contributor since inception. During the autumn, the market tightened noticeably as a result of a large share of the VLCC fleet, around 15%, being sanctioned due to trade with Russia and Iran. This helped keep spot market day rates well above USD 100,000 per day. In recent months, the privately owned South Korean company Sinokor has also been a very active buyer, driving second-hand values up by 10-15%. Frontline has taken advantage of this by selling eight of its oldest vessels, built in 2015 and 2016, while at the same time replacing them with nine new contracts with delivery from the third quarter of 2026 to the second quarter of 2027. The fleet renewal has been carried out at a clearly favourable price and demonstrates the benefits of being part of the Fredriksen system. Given the fleet’s age profile and prevailing trading patterns, we believe that Frontline’s cash flows, of which the vast majority are distributed quarterly, will be very strong in the coming years.

Finally, as always, we would like to thank you, our co-investors for your trust. Please do not hesitate to contact us with any comments or questions.

All figures are stated in SEK and returns are reported net of fees, unless otherwise stated.