EN 
SE 
We enter the reporting season with a well-trimmed portfolio
At the end of September, the NAV price for the fund’s A-class was 109.10. During the month, the A-class of the fund fell by 0.58 %, which means a return of -5.32 % since the beginning of the year. Over the rolling twelve months, the return is -6.81 %, with a standard deviation of less than 12.6 %.*
The fund systematically follows the trend in the smallest companies on the stock exchange and uses dynamic risk control to quickly reduce exposure or take profits when the trend turns downward.
September was a weak month for Swedish stocks
September is historically one of the weaker stock market months of the year. In many stock markets, the month was characterized by lower returns and greater price movements than the average. This year, September was also a weak month for the Swedish stock market, with all the Swedish stock index fell in negative territory.
The fund fell by 0.58 % during the month. The OMX Large Cap index fell by 1.59 %, the OMXS30 by 1.15 %, the OMX Mid Cap by 2.66 % and the OMX Small Cap by 0.59 %.
The development in the Small Cap index continues to be strongly influenced by Sivers Semiconductors, although the impact is less than before. The company’s market capitalization has decreased sharply, but the stock has continued to have a very significant weight in the OMX Small Cap index.
Looking ahead
We are positive about the market after the weak September month.
The fund is well positioned ahead of the Q3 reports and enters the upcoming reporting season with a well-trimmed portfolio. The systematic risk management means that exposure can be quickly adjusted in companies that have received a higher weighting after a longer period of strong development. In this way, the risk in individual holdings can be gradually reduced as positions grow larger, while the fund maintains exposure to companies that continue to exhibit a strong trend.
The development of the fund and companies in September
The fund developed in line with the OMX Small Cap Index during the month.
The fund has a beta of 0.51* against the benchmark index, which means that the portfolio has historically had about half the market sensitivity as the index. The portfolio’s total P/E ratio is 12* and the Price-to-Book (P/B) ratio is 1.55*.
During the month, the fund was overweight in nine of the ten best-performing holdings in the portfolio.
The fund's investments are systematically guided by a quantitative model that analyses a number of factors to identify shares with strong and sustainable positive trends.
The best companies in the portfolio during the month, market capitalization and portfolio weight as of the last September.
| Name | Return sep | Weight | Market value |
| STILLE | 23,50 % | 1,11 % | 2246msek |
| YUBICO | 23,45 % | 2,59 % | 10bnsek |
| SCANDI STANDARD | 22,60 % | 1,10 % | 11bnsek |
| HANZA | 20,40 % | 1,07 % | 11bnsek |
| FM MATTSSON | 17,00 % | 1,08 % | 4440msek |
The worst companies in the portfolio during the month, market capitalization and weight in the portfolio as of the last September
| Name | Return sep | Weight | Market value |
| NORDREST | -13,00 % | 0,98 % | 3328msek |
| LIME TECHNOLOGY | -12,50 % | 0,53 % | 3289msek |
| STUDSVIK | -11,50 % | 1,06 % | 1740msek |
| Hansa Biopharma | -9,28 % | 0,99 % | 3413msek |
| AVARDA BANK | -9,10 % | 0,99 % | SEK 13bn |
Did you know that? September is the worst stock market month of the year in historical terms.
It is actually a global phenomenon. On many of the world’s stock exchanges, September has historically featured lower returns and greater volatility than the average. It is difficult to pinpoint the exact reason, but seasonal effects, changes in positions after the summer, and a more active news flow are usually cited as possible explanations.
So when the stock market feels a little extra shaky in September, that’s not entirely unusual.
Source: Ciccone & Etebari (2008); Fang, Lin & Shao (2017), Financial Management.
*Infront data 20261002
A fund strategy that differs from other funds
The fund's goal is to achieve good risk-adjusted returns, offer equity exposure to companies that few other funds own, and to weather downturns well through equal weighting and even sector exposure.
The fund's holdings are relatively equally weighted over time. Historically, the strategy of equally weighting a broad equity portfolio has resulted in higher risk-adjusted returns compared to market-value-weighted broad portfolios. This outperformance can be attributed to the strategy's ability to better handle downturns, unlike value-weighted portfolios that are often heavily concentrated in individual stocks. The strategy is based on trend-following investments when the fund receives capital, focusing on companies that exhibit low volatility and a clear positive trend.
Finserve Micro Cap invests primarily in companies listed on the regulated market. Over time, the portfolio consists of more than 100 companies listed primarily on the OMX Small Cap and OMX Mid Cap lists. Over time, the companies in the portfolio have an average company value of approximately SEK 2.5-3.5 billion. This value is significantly lower than the average among competitors' micro cap and small company funds.
Thanks to regular equal weighting, the trend strategy and the fact that the fund is one of the few fund owners in many of the companies, the fund has a low correlation with traditional micro cap and small company funds.