“Historically speaking, September has been a weak stock market month. This was also the case this year, and technology companies were no exception.
Larger technology companies, which otherwise rose the market this year, had a difficult month and smaller technology companies also continued their weaker development,” the managers begin. Inflation and interest rates are still in focus. The US central bank left the interest rate unchanged but communicated that more increases may be required and that the interest rate will remain at a high level for a longer period.
The fund’s main contributors during the month were Tobii Dynavox and Karnov, while Secra and Alfen were in the negative balance. “Karnov provides digital solutions for legal information, including legal databases and legislative information.
There have been negative tones around Karnov due to the progress of AI and thus a fear that the company’s customers will not see the same need for Karnov’s services. However, we believe that Karnov has a very strong position in its niche and can use it and its valuable data in new product offerings going forward.” The managers have sold in Tobii Dynavox after the company’s strong development in order to rebalance the portfolio.
The managers have also sold in Talenom and Hamilton Thorne. The fund has also acquired a new holding in Yubico, The company specializes in security solutions and is best known for its product YubiKey.
“Their business model involves the sale of these physical devices to both companies and individual consumers to offer secure access to various digital services and protection against phishing attacks,” the managers explain. The managers write that they are convinced that identification solutions are important and will receive a even greater role, not least with the growth of AI tools, which will also be used by fraudsters. The fund’s largest holdings at the end of the month were BTS Group, Qualys and Vitec with portfolio weights of 5.1, 4.9 and 4.5 percent respectively. The largest sectors were information technology, health care and industrial goods and services with exposures of 61.0, 19.0 and 8.6 percent respectively.