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SE 
Stock market sentiment among small caps continues to be challenging, with OM Small Cap PI and First North All-Share noting -1.2 % and -3.3 % respectively during October. Exelity ended the month at -1 % and is thus at +19.2 % for the full year 2025. Although Exelity is an absolute return fund, we note that it has outperformed all indices in 2025 (OMX SPI: +7.3 %, OMX Small Cap: +13 %, First North: -1.2 %). Exelity is thus on track for another strong full year, with the goal of returning at least 10 % annually (2024: +26 %, 2023: +27 %).
In summary, for 2025, the equity leg has contributed somewhat stronger than the transaction leg, but it is also more volatile from month to month in line with the development of the small cap index in general. The listed portfolio is at approximately +14 % for the year, which is better than all small and large cap indices.
During the month, the transaction leg contributed +0.5 %, while the equity leg developed by -1.5 %. Three new guarantees were signed, and Exelity now has five ongoing guarantee commitments with a total volume of 32 MSEK. Guarantee compensation contributed approximately 0.5 % during October. On the loan side, the loan from Nosium was repaid in full, and the fund now has nine ongoing loans with a total value of 61 MSEK – corresponding to approximately 23 % of the fund's value. Guarantee divestments in, among others, Prostatype weighed down the development somewhat during the month, and the guarantee shares from Guard Therapeutics dampened it further.
It has been an intense month in the equity segment, which mainly consists of Swedish small-cap companies. Guard Therapeutics announced negative topline data, which caused the share to plummet by 93 %. Exelity guaranteed the company's issue in the spring and received compensation in the form of guarantee shares. In addition to Guard, negative developments were noted in Physitrack (-22 %), Nanexa (-15 %), Zinzino (-17 %) and CTT (-15 %). In the positive balance were Nordrest (+10 %) and Xvivo (+10 %), where Nordrest has now climbed up to one of the fund's three largest holdings together with Naxs and Paxman. It is also worth mentioning that several holdings were sold with good timing before major price drops. Evolution was divested before the report (-16 %), while most of Xbrane was sold before the negative FDA decision (-68 %). The same applies to Integrum (-38 %), and Envipco was divested north of SEK 90 in September (-22 % in October). We remain skeptical about Evolution meeting its EBITDA margin guidance for 2025 and see risks in Turkey and Asia in the medium term.
We summarize October as a month where Exelity once again beat comparable indices, and where stability remained on the downside despite strong negative movements in the portfolio companies. The pipeline for 2025 continues to look stable.