The SKAGEN Global A fund rose 0.68 percent in February, underperforming its benchmark index which climbed 3.23 percent. Since the turn of the year, the fund has decreased by 5.86 percent, trailing the index which has increased by 2.07 percent. This is according to a monthly report from portfolio managers Knut Gezelius and Midhat Syed.

The managers initially note that global equity performance was volatile in February, primarily driven by AI-related concerns and U.S. strikes against Iran.

"The AI theme continues to dominate headlines and caused significant disruption within the software sector, as the perceived threat from new AI-driven applications prompted the market to sell off companies whose business models are heavily dependent on intangible assets," the managers write.

They add that the sell-off mainly affected companies listed in the U.S. and Europe, while declines were seen across several sub-sectors – from software firms and data providers to insurance brokers and asset managers.

"In our view, the magnitude of the share price declines was amplified by cascading algorithmic trading, leading to significant capital outflows from sector-specific ETFs. Currently, there are no clear signs of a deterioration in underlying business fundamentals, although one must remember that markets themselves are forward-looking."

The fund's returns were weighed down by the sell-off, although the declines also presented opportunities to initiate new positions or increase existing ones, which the fund acted upon.

The holdings that contributed most positively during the month were Canadian Pacific, Waste Management, and Munich Re, with the former two benefiting from business models based on physical assets that are unlikely to be replaced by AI. Conversely, Amazon, TMX Group, and Microsoft weighed on performance.

"While the Canadian exchange operator TMX Group was hit by the AI-related downturn, tech giants Microsoft and Amazon fell due to the much higher-than-expected future capital expenditures announced in their quarterly reports."

In conclusion, the reporting period showed that several large tech companies are sharply increasing their investments in data centers, primarily due to anticipated demand from AI. However, the managers are skeptical as to whether future AI revenues can truly justify these massive investments and warn of the risk of overcapacity. The fund's largest holdings at month-end were Relx, Canadian Pacific Kansas City, and Aegon, with weightings of 7.2, 7.0, and 5.6 percent respectively.

SKAGEN Global A, %February, 2026
Fund MTD, change in percent0.68
Index MTD, change in percent3.23
Fund YTD, change in percent-5.86
Index YTD, change in percent2.07