The Lannebo Teknik Småbolag fund rose 5.4 percent in May, underperforming its benchmark index which climbed 19.4 percent. Since the turn of the year, the fund has declined 11.3 percent, trailing the index which has surged 56.7 percent. This is according to a monthly report from fund managers Johan Nilke and Albin Eriksson.

The managers initially note that the May newsletter will be the fund's last, as it is set to merge before the next month-end.

'We are aware that the fund's returns over the recent period have not developed in the direction that either we or you had hoped for. Small-cap stocks have faced a challenging period, even more so regarding smaller technology companies, particularly those listed in the Nordic region', the managers write, continuing:

'We are deeply grateful for the trust you have placed in us to manage your capital and for the patience you have shown. We take many lessons from this period and will apply them in the ongoing management of Lannebo Teknik.'

Regarding market performance in May, it remained strong despite continued concerns related to inflation and global trade. Performance was robust for the technology sector and particularly the semiconductor industry. The tech-heavy Nasdaq rose 10 percent, while the SOX semiconductor index increased by 22 percent.

The holdings that contributed most positively were Sinch, Qualys, and Autostore, while Vitrolife, Elekta, and Cbrain were the primary detractors.

'Compared to previous periods, we note that the market is no longer reflexively penalizing software companies due to general 'AI anxiety' to the same extent as before.'

During the month, Sinch presented a Q1 report showing strength across most key metrics, according to the managers. The cost-savings program benefited both margins and cash flow.

'Looking ahead, we see a continued recovery journey for Sinch, driven by cost savings and a broader long-term rollout of RCS (Rich Communication Services) as Apple continues to open up its devices to the technology, which benefits the company.'

In terms of portfolio activity, the fund increased its exposure to health technology through purchases of Raysearch, Devyser, Carasent, and Bonesupport.

At month-end, the fund's largest holdings were Sectra, Nordic Semiconductor, and Mycronic, with portfolio weights of 6.2, 5.6, and 5.5 percent, respectively.

Geographically, Sweden constituted the largest market by far with 59.6 percent of exposure, followed by Canada and the USA at 13.2 and 8.1 percent, respectively.

Lannebo Teknik Småbolag, %May, 2026
Fund MTD, percentage change5.4
Index MTD, percentage change19.4
Fund YTD, percentage change-11.3
Index YTD, percentage change56.7