Adrigo Monthly report november 2025

Performance

Adrigo Small & Midcap L/S Class A and Class C declined by 2.4% in November after fees. The Carnegie Small Cap Return Index Nordic fell by 1.0% in November. The fund’s year-to-date performance, –15.8%, remains clearly unsatisfactory. The negative return is mainly attributable to a very weak share price performance in three of the fund’s holdings.

Among the fund’s larger positions, Online Brands (e-commerce) and Hansa Biopharma (pharmaceuticals) made solid contributions. Among the fund’s smaller and mid-sized positions, we noted positive contributions from BioArctic (pharmaceuticals) and Getinge (medical technology).

The fund’s short positions, as a group, had a negative impact on performance. Since inception, Adrigo Small & Midcap L/S Class A has returned 42.4%, after fees. Over the same period, the benchmark interest rate STIBOR 1M has returned 9.4%, while the Carnegie Small Cap Return Index Nordic (not a benchmark index) has returned 107.6%.

Market Overview

Global equity markets delivered mixed performance. Brazil was one of the strongest markets with an increase of 6.4%. The Indian market, despite challenges earlier in the year, rose by 2.0% during the month. At the same time, we saw sharp pullbacks in other emerging markets such as Korea and China, which fell by 4.9% and 2.5%, respectively.

In the Nordics, Denmark stood out with a gain of 2.3%, followed by Sweden, which increased by 0.5%. Finland and Norway declined by 0.4% and 0.1%. Small-cap companies were negatively impacted by fund outflows, and the CSX Sweden Small Cap Return Index fell by 1.8%.

Transaction activity has remained strong, and we are seeing a steady flow of new companies coming to the market in December as well as at the beginning of 2026.

Companies and Performance Highlights

Online Brands delivered a strong report for the third quarter. Sales grew 35.6%, of which organic growth accounted for 7.7%. As recently acquired companies initially had lower margins (and a different seasonal pattern), the EBITA margin decreased to 8.5% (12.2). By 2026, these businesses are expected to be fully integrated, which should significantly strengthen margins.

The company has grown rapidly in recent years through a series of acquisitions, with revenue on a rolling 12-month basis increasing from SEK 112 million in Q1 2021 to today’s pro forma figure of SEK 489 million. Growth has not only been acquisition-driven; organic growth has also been strong. The latest acquisition, Tanrevel, a leading company within self-tanning technology, adds additional international growth potential. In connection with the acquisition, Conni Jonsson’s company Qarlbo became a 10% owner in Online Brands and took a seat on the board. We continue to see strong potential in the share, which continues to fly under many investors’ radars. 

Another consumer-related holding in the portfolio, Pierce Group, grew organically by 20% during the third quarter. The company continues to streamline its cost base. A somewhat unconventional, yet telling, indicator is that sales per employee has increased by 80% since Q2 2023, when CEO Göran Dahlin took office. From Q2 2026, transformation-related costs will begin to decline, while certain major assets will be fully depreciated. The positive EBIT impact is estimated at SEK 30–40 million, compared with our estimate for the current year of SEK 40–50 million. At its current valuation, Pierce stands out as one of the most attractively priced pure e-commerce stocks in the market.

Another lowly valued consumer company is RugVista, which also delivered strong growth during the quarter. The company has made significant changes in recent years, which we believe will support future growth.

Following Dometic’s report at the end of October, the share came under heavy selling pressure, and we used the opportunity to substantially increase our position.

Finally, as always, we wish to thank our co-investors for your continued trust. Please don’t hesitate to reach out with any comments or questions.