Monthly report March 2026

Performance

Adrigo Small & Midcap L/S Class A and Class C declined by 8.0% in March, net of fees. The Carnegie Small Cap Return Index Nordic declined by 3.2% during the month, while the Carnegie Small Cap Sweden Index fell by 5.6%.

Among the fund’s larger holdings, Frontline (transportation) once again made a positive contribution. Among the fund’s small- and mid-cap positions, we saw solid contributions from Maven Wireless (hardware), BrainCool (medical technology) and Bonesupport (medical technology). The fund’s short positions, as a group, had a positive impact on returns.

Adrigo Small & Midcap L/S Class A has, since inception and after fees, returned 14.7%. Over the same period, the benchmark rate STIBOR 1M has returned 10.1%, while the Carnegie Small Cap Return Index Nordic (not a benchmark index) has returned 104.6%.

Market overview

Global equity markets were heavily impacted by the war in the Middle East, and most major markets delivered negative returns. After a very strong start to the year, the Korean market corrected by 20.6%. Japan’s Nikkei and the Indian market declined by 12.6% and 11.5%, respectively. MSCI World closed down 5.6%, while the EURO STOXX 50 fell by 9.1%.

In the Nordics, the Swedish market was the weakest, with the OMX Stockholm Benchmark declining by 8.1%. Finland and Denmark performed better, posting declines of 3.6% and 1.0%, respectively. Supported by rising oil prices, the Norwegian market gained 9.3%.

Swedish small caps outperformed large caps, with the Carnegie Small Cap Sweden Index declining by 5.6%, while the OMXS30 closed down 8.2%.

Companies and performance highlights

Following a relatively weak fourth quarter for Online Brands, which led to a sharp share price decline in February, the stock continued to fall in March. Trading volumes have been low and the valuation has, given the turnaround we believe has started and is expected to be reflected in the first-quarter report, become even more attractive.

Dometic surprised the market by withdrawing its dividend proposal, which had been announced only two weeks earlier. The market interpreted this as a profit warning, and the share price fell by 19% during the day. Management explained that the Board was “erring on the side of caution,” as the company’s end markets have historically weakened during periods of heightened geopolitical uncertainty. Given the relatively high debt level, the decision appears sensible. Dometic has reported negative organic growth for 16 consecutive quarters, and most of its end markets are likely at or near their cyclical bottom. At the same time, the company has aggressively reduced costs, and it is impressive how well margins have been maintained. Our valuation approaches indicate significant upside potential in the stock.

Maven Wireless has developed weakly in recent years, partly due to previously very aggressive market investments that may have appeared somewhat unfocused. In addition, the launch of Nimbus, a product the company has high expectations for, was delayed by up to two years. Management has now relaunched Nimbus. A new CEO took office last year, and the strategy in North America is now being reviewed after taking longer than expected to achieve commercial traction. A cost-saving program is expected to reduce operating costs by 10–15%, with full effect by mid-year. Cash flow has also been weak, putting pressure on liquidity. In March, the company carried out a small, directed share issue, raising just under SEK 15m. There are, however, some positive signs. For example, Maven received a call-off order from the Austrian transport authority worth SEK 51m in February. If management succeeds in improving cost development while Nimbus gains traction in the market, there is significant potential in the stock. We remain cautiously optimistic, while fully aware that the company has not delivered in line with expectations in recent 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.