Monthly report February 2026

Performance

Adrigo Small & Midcap L/S Class A and Class C declined by 10.97% in February, after fees. The Carnegie Small Cap Return Index Nordic rose by 2.8% during the month. More than half of the negative return is attributable to two holdings.

Among the fund’s larger holdings, Frontline (transportation) once again made a strong positive contribution. Among the fund’s small- and mid-cap positions, we saw solid contributions from Braincool (medical technology) 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 40%. Over the same period, the comparison rate STIBOR 1M has returned 9.8% and the Carnegie Small Cap Return Index Nordic (not a benchmark index) has returned 105.4%.

Market Overview

Global equity markets developed positively in February. Japan’s Nikkei rose by 10.4%, Taiwan increased by 10.5%, and Brazil by 4.1%, while MSCI Emerging Markets gained 5.0%. Performance was weaker in China, where the Hang Seng declined by 5.8% and the broader market fell by 2.8%.

Nordic large caps generally performed strongly, with Novo Nordisk as a notable exception. The Norwegian market rose by 7.5%, Sweden’s OMX Benchmark increased by 6.1%, and Finland advanced by 4.7%. In contrast, the Danish equity market declined by 16.0%.

Swedish small caps showed modest positive performance, with the CSX Sweden Small Cap Return Index rising by 2.1%.

Companies and Performance Highlights

Online Brands, a holding that has been in the fund for many years, delivered fourth quarter results that did not meet market expectations. The weak share price performance had a very negative impact on the fund’s return. Reported sales remained strong, increasing by 29.1%. Although organic growth accelerated to 9.3% (7.7% in the third quarter), this is below the target level of above 15%. It should be noted, however, that the comparison figures were demanding, as the company reported organic growth of 24.3% in the corresponding quarter of 2024. The quarter was also characterised by continued restructuring costs from acquisitions completed during the year (GetCamping, Reforma and Tanrevel), which resulted in margins below expectations. Underlying developments were, however, very positive. Among other things, Tanrevel’s marketing strategy has been fundamentally revised, reducing costs. The company’s international expansion is now being executed in the same way as other group companies, which is highly cost efficient. Cost synergies have also been realised between Bread & Boxers and Isbjörn. Finally, the two largest group companies, Trendcarpet and Kitchen Lab, achieved record sales and earnings in the fourth quarter.

It has clearly taken considerably longer to improve profitability in Online Brands. Chairman David Rönnberg, who owns 15.28% of the company, states that 2026 will be the first year without integration costs and notes that the company must now deliver. We look forward with confidence to the figures for the first quarter of the year.

Hansa Biopharma’s BLA application for imlifidase was accepted by the FDA in the middle of the month. Unfortunately, the company did not obtain Priority Review, meaning that, if approved, the product could be launched in the first quarter of 2027, rather than the fourth quarter of 2026 under Priority Review. The PDUFA date is set for 19 December 2026. After the end of February, Hansa completed a USD 30 million financing through convertible bonds. The loan carries an interest rate of 3% and can be converted at a price of SEK 43. The company has some flexibility to limit dilution by repaying the nominal amount, allowing only the excess amount to be converted into shares. As a result, Hansa is now funded until mid-2027, which materially reduces risk. We also expect that CEO Renée Aguiar-Lucander’s restructuring of the European commercial organisation will lead to improved momentum in the second half of the year.

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.