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Meriti Neutral share class B continued its positive development and rose by +2.79 percent in value during September. The fund has thus generated positive returns during all nine months of the year and the year's increase sums up to +8.52 percent. Since the strategy's inception pro forma 2010-06-30, it has returned +231.1 percent, while the correlation to the Swedish stock market has been 0.11.
The broad European stock index S&P Europe 350 Index rose by +1.6 percent during the month. At the sector level, the spread in outcomes was large. Information Technology and Materials performed best, while companies within Consumer Staples and Communication Services performed worst. From a global perspective, European stocks performed weakly during the third quarter of the year. The negative development for German stocks (-1.2 percent) weighed on the European market. Despite a period of political instability, French stocks rose during the quarter, with the CAC 40 Index up +3.3 percent.
In October, companies will begin reporting their third-quarter results. European companies' profits during the first two quarters of the year have developed strongly, rising by +2.2 percent and +4.0 percent respectively. According to data from LSEG I/B/E/S, profits are expected to weaken in Q3 2025 and fall by -0.6 percent compared to the corresponding quarter last year. During the month, the fund has net bought companies within Banks, Pharmaceuticals, Biotechnology and Life Sciences and Materials at sector level. Similarly, the fund has net sold companies within Food Beverage & Tobacco, Retailing and Capital Goods.
At month-end, the fund's largest net positive positions were in the Banks, Retailing and Pharmaceuticals, Biotechnology and Life Sciences sectors, and the largest negative sector exposures were Semiconductors & Semiconductor Equipment, Diversified Financials and Household & Personal Products.
The fund's Value-at-Risk (95% confidence, 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 0.08. At the end of September, the fund had a total gross equity exposure of 185 percent, consisting of 203 purchased (long) equity positions balanced by 207 sold (short) equity positions. The long positions averaged 0.50 percent and the short positions averaged -0.42 percent.