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Kavaljer
Investmentbolagsfond
July 2025
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A global investment company fund focused on quality, broad diversification and low costs
Kavaljer Investmentbolagsfond is an actively managed equity fund that takes an index-independent approach, investing long-term in Swedish and foreign investment companies and conglomerates, primarily in Sweden and the USA.
Investment companies and conglomerates are entities that invest in other companies while actively supporting their development. These types of companies offer several advantages: active ownership, effective risk diversification, and often attractive dividends. Additionally, investment companies with listed holdings are sometimes traded at a discount.
Through the Investmentbolagsfond, investors have a low-cost opportunity to benefit from the growth of a broad range of high-quality companies, both large and small, operating worldwide. The fund is available on platforms such as Avanza, Nordnet, and SAVR, as well as through banks and institutions trading via MFEX and Allfunds.
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Strong Stock Market Month but with Large Variations
July was a relatively strong month for the stock market, with the Stockholm Stock Exchange (OMXSPI-GI) rising by 2.0%, while the world index (Dow Jones World Index) increased by 1.3%.
However, our observations are that the seemingly calm and positive market concealed significant variations. In general, we find that companies that had not yet reported earnings performed relatively well, while the market was tough on companies that showed even the slightest weakness in their reports..
Fund Performance
Kavaljer Investmentbolagsfond had a very strong month, rising by 3.8% in July. Over the past five years, the fund has delivered a return of 75%, compared to 75% for the Stockholm Stock Exchange (OMXSPI-GI) and 62% for the world index.
The largest positive contributors to the fund's performance in July were MedCap, VNV Global, Microsoft, Dometic, and Beijer Alma, contributing +2.2, +0.5, +0.5, +0.5, and +0.4 percentage points respectively. The largest negative contributors were Ratos, Vitec, and Byggmästare A&J Ahlström, with -0.6, -0.2, and -0.1 percentage points respectively.
Portfolio changes
During the month,, following significant share price increases, we reduced our holdings in MedCap and Beijer Alma, and increased our positions in Sdiptech and Vitec.
Later in this letter, we share our thoughts on the quarterly reports from MedCap, Beijer Alma, Dometic, and Vitec. The equity share was 99%.
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MedCap: All-Time High EBITA Even Without Melatonin Royalties Restored Confidence in the Company
Until recently, the year had been rather bleak for MedCap. The market was initially disappointed when the company’s profitability declined sharply as its royalty revenues from melatonin nearly vanished. Since then, the company has struggled to demonstrate profit growth, which pressured its valuation.
In Q2, however, a long-awaited turnaround occurred. Net revenue increased by 14%, and adjusted EBITA grew by 20%, meaning profitability even improved. The strong development was driven by positive contributions from all business areas. This was the company’s highest quarterly profit ever, demonstrating its underlying stability and resilience—even without any royalty income.
Since the crash following the Q4’24 report, the stock has risen by over 80%, with around 40% of that increase occurring in July alone.
After last month, MedCap represented 3.6% of Kavaljer Investmentbolagsfond and also accounted for one-third of the net asset value in Linc, which made up 2.9% of the fund. In total, MedCap represented 4.6% of the fund at the start of the month. The rally following the quarterly report thus contributed significantly to the fund’s strong performance in July. After the rally, we chose to reduce our position slightly, but MedCap still accounts for 4.6% of the fund, while Linc makes up 3.1%..
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Beijer Alma: Strong Report and Turnaround Essentially Confirmed
Beijer Alma delivered a strong Q2 with solid growth (+7%, of which +3% organic) and improved profitability (15.1% adjusted EBITA vs. 14.3% last year). The company experienced mixed demand, with Asia and Europe growing while the Nordic region and the US were weaker.
Two strategic acquisitions were completed during the quarter—one spring manufacturing company in India and one Danish company specializing in flow components for industrial use. Additionally, an action plan was introduced and initiated for Lesjöfors to improve profitability, including a reduction of approximately 70 employees. This affected Q2 results by -SEK 120 million, of which SEK 70 million was non-cash. The program is expected to result in annual cost savings of SEK 35 million.
Our overall impression is that the company has taken the right steps to improve profitability in Lesjöfors—its problem child in recent years—while Beijer Tech continues to deliver solid and stable results.
This combination has restored the company’s credibility with the equity market. Since we bought the stock for the fund earlier this year, it has risen by over 50%.
Beijer Alma represents 2.5% of Kavaljer Investmentbolagsfond.
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Dometic: Strong Cash Flow and Discipline Provide Balance Sheet Breathing Room – But We Still See Considerable Upside
Dometic is fundamentally a very solid company, similar in many ways to Thule. The company is led by Juan Vargues, who has an excellent track record from Assa Abloy, where he steered the company toward a higher share of aftermarket business—leading to greater stability and higher profitability. Vargues also has a significant personal ownership stake in Dometic.
The company has gone through a “perfect storm,” having made acquisitions during the boom cycle, which led to high leverage just before the market turned downward. High debt combined with declining revenues and profitability has led many to expect a rights issue.
Despite continued tough market conditions, the company maintained solid profitability (14% in Q2), while reducing inventory and using the resulting strong cash flow to pay down debt.
Looking ahead, we expect a slowly improving market, which primarily provides breathing room for the balance sheet. A year from now, we believe the focus on the balance sheet will be behind us, and investors can instead turn their attention to the company’s long-term targets—namely increasing the share of high-margin aftermarket business. At that point, the market could begin to price in many years of strong profit growth, which would justify a higher earnings multiple. That’s why we believe the stock still has significant upside, despite its recent strong performance.
Dometic represents 1.9% of Kavaljer Investmentbolagsfond.
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Vitec: Seemingly Weak Report Explained by Subsidiary’s Previous Outperformance – The Rest Remains Stable
Vitec delivered a seemingly weak Q2 report, with net revenue increasing by 4%, but EBITA falling by 11%.
The weaker profitability was mainly due to two factors:
The subsidiary Enova was significantly over-profitable last year and is now back to normal levels. Enova specializes in energy management software for large enterprises in the Netherlands, offering planning and forecasting tools for electricity consumption and production. Enova earned a lot of money when electricity prices were high and volatile. This segment contributed SEK 30 million more to EBITA in Q2 2024 than in Q2 2025.
Aside from this, the business units showed stable underlying performance but nothing extraordinary.
The Vitec share has dropped from over SEK 630 per share in February last year to around SEK 370 today. At the peak, Enova was at the height of its extraordinary profitability, and the market assumed the group’s strong profit development was evenly spread and sustainable. In reality, we now see that Enova was significantly over-profitable during that time, and profitability has since normalized.
That said, Vitec still assesses that it has a strong acquisition pipeline and good preparedness for future deals.
Vitec is now trading at approximately 20x free cash flow, which is significantly lower than in a long time. The company remains a highly stable structure with predictable recurring software revenues.
We believe the market has overreacted to the downside and therefore chose to increase our holding in Vitec after the post-report decline. Vitec now represents 1.1% of Kavaljer Investmentbolagsfond.
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Service Providers & Terms
Fund Type: SICAV (UCITS)
Name: Kavaljer Investmentbolagsfond - A EUR
Custodian: CACEIS Investor Services Bank S.A.
Auditor: PricewaterhouseCoopers Société cooperative
Management fee: 1,0% / year
Minimum Investment, SEK: 100
Subscripiton/Redemption: Daily
ISIN: LU2895054406
Risk level: 4 av 7
Category: Equities, Global & Sweden
AUM: 902 mSEK
Morningstar Rating: ⭐️⭐️⭐️
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“Stock market volatility is not a risk to us. Risk comes from not knowing what you’re doing.”
Warren Buffet
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Nacka Strand, August 4, 2025
Peter Lindvall, Håkan Telander & Jesper von Koch |
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