Adrigo Small & Midcap L/S Class A and Class C declined by 4.78% in September after fees. By comparison, the Carnegie Small Cap Return Index Nordic fell by 0.57%, while the Carnegie Small Cap Sweden Index declined by 1.29% during the month.
The Stockholm stock market weakened somewhat in September, with significant differences in performance across sectors and individual companies. Large-cap stocks generally held up better than smaller companies, as continued economic uncertainty and higher interest rates weighed on risk appetite. Within the market, parts of the financial sector performed relatively well, while more interest-rate-sensitive and cyclical sectors were weaker. Performance was also mixed among technology and consumer-related companies. Market conditions remained challenging for small caps, with considerable variation between individual stocks.
Holdings and portfolio changes
During September, work continued on transitioning Adrigo from a hedge fund to a long-only equity fund, maintaining its focus on Swedish small-cap companies. The transition was completed on 1 October 2026. Under the new UCITS framework, a single holding may account for no more than 10% of the fund's assets, while the combined weight of holdings that individually exceed 5% may not exceed 40% of the fund's assets. The ability to invest in unlisted equities will also be restricted.
As part of the transition to the new framework, the portfolio has been broadened and now comprises a total of 39 companies. The holdings in the unlisted companies Howwe Technology and Fishbrain have been divested following valuations that were subsequently verified by an independent audit firm.
The position in Initiator Pharma has been reduced and now accounts for 6.0% of the fund, although it remains the largest holding. The company develops treatments for erectile dysfunction, an area where both the potential and the risks are considered particularly high. Against this backdrop, and given the stock's limited liquidity, the exposure has been reduced.
Hansa Biopharma, Camurus, Tången Industrikapital and Alligo are also among the fund's largest holdings, with portfolio weights of between 4% and 5%. The holding in SKF has been divested, as the company no longer falls within the small-cap segment of the Stockholm stock market.
