Large Divergences Across Market Segments
June was marked by significant divergence across market segments: Small and Mid Cap fell approximately 5%, while Large Cap rose 2%. Kavaljer Investmentbolagsfond delivered a positive return of 1.5% during the month, with cumulative returns since inception now standing at 141%.
We are observing clear bubble tendencies in today's AI investments, where the market is willing to pay high multiples for companies that can be linked to the AI trend. We believe the structural winners are rarely the pure-play AI companies, but rather well-established and profitable businesses whose role becomes clearer only once enthusiasm around the most speculative ventures has subsided.
Deeper Reflections on Our Holdings
In this letter, we review three of the fund's holdings: Thermo Fisher, a global leader in pharmaceutical development in which the fund has recently invested; Siemens, which we view as a beneficiary of the infrastructure demanded by AI development; and Lifco, a high-quality serial acquirer currently trading at a historically low valuation.
Please refer to the attached file for the full monthly letter.
Disclaimer
Historical performance is no guarantee of future returns. The value of an investment in the fund may both increase and decrease, and it is not certain that you will get back the full amount invested. For more information about the fund, please see the fund’s factsheet at kavaljer.se/en/.
This publication is addressed to clients and other stakeholders of Kavaljer AB (Kavaljer). The information is based on Kavaljer’s own assessments at the time of publication as well as on other sources. However, Kavaljer cannot guarantee that the information from these sources is correct, and the assessments are based on factors that may prove to be inaccurate. Anyone reading the information should be aware that it does not constitute an offer to buy or sell financial instruments or an invitation to engage in such transactions. The information is based on data known to Kavaljer at the time it was published. Assessments and conclusions presented may be subject to change, and such changes may occur without Kavaljer distributing updated information. Kavaljer is not responsible for any loss or other damage (direct or indirect) related to the use of this publication, to investment decisions, or otherwise, nor for any inaccuracies in the publication arising from incorrect or incomplete information from third parties.
Contact us
Kavaljer AB
Visiting Address: Cylindervägen 12, 9th floor
Box 1221, 131 28 Nacka Strand, Sweden
Phone: +46 8 684 393 00
Email: info@kavaljer.se
About Kavaljer Funds
Kavaljer offers asset management services for private individuals, companies, institutions, and foundations. With over 30 years of experience, the goal is to generate long-term and stable returns through funds and discretionary portfolio management.
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