Monthly report June 2026

Performance

Adrigo Small & Midcap L/S declined by 5.0% in June, net of fees. The Carnegie Small Cap Return Index Nordic fell by 2.3% during the month, while the Carnegie Small Cap Sweden Index declined by 1.8%.

Among the fund's larger holdings, Hansa Biopharma (pharmaceuticals) and BrainCool (medtech) made the largest positive contributions. Among the fund's small and mid-sized positions, Pierce Group (e-commerce) and Getinge (medtech) also contributed positively. Performance was primarily weighed down by Initiator Pharma, Dometic and Nobia. The fund's short positions, as a group, had a modest negative impact on performance.

Adrigo Small & Midcap L/S Class A has, since inception and after fees returned 4.3%. Over the same period, the reference rate STIBOR 1M has returned 10.6%, while the Carnegie Small Cap Return Index Nordic (not the Fund’s benchmark index) has returned 113.8%.

Market overview

Global equity markets showed mixed performance during June. Following the strong rally in May, Japan's Nikkei Index continued to advance, gaining 5.7%. Both the MSCI World Index and the MSCI Emerging Markets Index were unchanged during the month. Euro Stoxx rose 4.7%, while the S&P 500 declined 0.9%.

In the Nordic region, the Danish equity market once again outperformed, rising 3.1%. The Stockholm Stock Exchange (OMX Stockholm Benchmark) gained 1.5%, while Norway and Finland declined by 4.7% and 3.2%, respectively. Swedish small-cap stocks underperformed large caps, with the CSX Sweden Small Return Index declining 1.8%, compared with a 2.1% gain for the OMXS30 Index.

Companies and performance

The fund's largest holding, Online Brands, acquired Frank Dandy AB during the month. The company designs and sells apparel under its own brand, with a product range that includes underwear, shirts, T-shirts and trousers. Founded in 2003, Frank Dandy generated sales of SEK 120 million and EBITA of SEK 15.8 million during the period from Q2 2025 to Q1 2026. The initial purchase consideration amounted to SEK 42.6 million, with potential earn-out payments of up to SEK 16 million. The acquisition was partly financed through a directed share issue, through which the company raised SEK 31.6 million at SEK 10 per share. The share price has performed weakly during the first half of the year, declining 37%, which has also weighed on the fund's performance during the period, while the first-quarter results were somewhat disappointing. On a pro forma basis, Online Brands generated sales of SEK 637 million and EBITA of SEK 42.3 million during the period from Q2 2025 to Q1 2026.

Hansa Biopharma hosted a capital markets day in New York, focusing on the results from the ConfIdeS study evaluating imlifidase in highly sensitised kidney transplant patients. The company brought together a number of transplantation specialists. Among the comments made were that imlifidase is "the greatest opportunity in transplantation in 2026" and that it has "completely changed the treatment of highly sensitised patients in France." Hansa has submitted its application for US approval based on the strong results from the ConfIdeS study. A regulatory decision is expected on 19 December 2026, which could enable a commercial launch during the first quarter of 2027.

I will step down as lead portfolio manager of the fund in mid-July, making this my final monthly letter. I would like to extend my sincere thanks to all unitholders for the trust you have shown over the years. It has been both a privilege and a great responsibility to be part of the fund's journey. The past couple years have been challenging for small-cap equities as an asset class, and performance has not developed as many had hoped. At the same time, I remain convinced of the long-term opportunities and look to the future with confidence.

Managing the Fund has always been a team effort, and it will continue to be so going forward. I am handing over responsibility to the experienced investment team at Espiria, which has been closely involved in the management of the Fund for several years. I am confident that the fund will continue to be managed with the same investment approach and focus.