Meriti Neutral monthly report – May 2025

Meriti Neutral share class B rose by +2.03 percent in value during May and the fund has thus risen by +4.78 percent in 2025. Since the strategy's start pro forma on 30 June 2010, it has returned +219.7 percent, while the correlation to the Swedish stock market has been 0.11.

A de-escalation in the US-China trade conflict led to a rebound in risk assets in May. Tariffs remain high, but it will take 2-3 months for macroeconomic data to show the extent of the damage they are causing to the economy. Various data sets remain strong; purchasing managers' indices benefit from trade easing and global monetary policy easing.

However, in Europe, there are structural growth concerns and uncertainty about the effects of increased defense spending, fiscal easing and the war in Ukraine. At the same time, scope for further interest rate cuts from the European Central Bank could support a recovery in corporate profits.
European stocks, measured as the S&P Europe 350 Index, rose by +4.87 percent during May, while Swedish stocks, measured as the OM Stockholm Benchmark Index, rose by +2.32 percent.

During the month, the fund has net purchased companies within Banks, Retailing and Media at sector level. Correspondingly, the fund has net sold companies within Health Care Equipment & Services, Software & Services and Capital Goods.

At the end of the month, the fund's largest net positive positions were in the Banks, Retailing and Telecommunication Services sectors, and the largest negative sector exposures were Semiconductors & Semiconductor Equipment, Diversified Financials and Automobiles & Components.
The fund's Value-at-Risk (95%, 1 day) has averaged 0.55 percent during the month and the equity market exposure, the fund's estimated beta to global equities, has averaged 0.10. At the end of May, the fund had a total gross equity exposure of 188 percent, consisting of 201 purchased (long) equity positions that were balanced by 211 sold (short) equity positions. The size of the long positions averaged 0.50 percent and the short positions averaged -0.41 percent.