The Lannebo Teknik Småbolag fund rose by 3.1 percent in June, underperforming its benchmark index which climbed 7.6 percent. Year-to-date, the fund is down 2.8 percent, which is notably better than the index's 10.4 percent decline. This is according to a monthly report from portfolio managers Johan Nilke and Andreas Dahl.

At the outset, the managers note that technology companies once again performed strongly in June, driven by optimism surrounding the trade agreement between China and the US, as well as renewed negotiations with Canada. Additionally, subdued inflation, which could potentially lead to further interest rate cuts, also contributed to the sector's positive momentum.

The best-performing holding during the period was the relatively new addition, cBrain.

"Following a pilot project in Kenya, the Kenyan Ministry of Information, Communications, and the Digital Economy issued a letter of intent to collaborate with the Danish government to implement cBrain's F2 product across all Kenyan ministries. cBrain's largest revenue stream comes from subscriptions to the F2 product and its add-on modules," the managers write, adding that they believe this development will facilitate the company's future business.

Paradox recently released a beta version of the sequel to Europa Universalis 4, which has reportedly been well received. Furthermore, the postponement of GTA 6 is seen as a positive for Paradox, prompting the managers to increase their position in the stock during June.

Descartes Systems had a weak month after opening its books, with organic growth falling short of expectations, mainly due to global trade uncertainties.

"During the earnings presentation, the company mentioned that container shipment volumes in May were down 7 percent year-over-year. Overall, this made Descartes the most negative contributor for the month. However, we continue to see Descartes as having a strong position in logistics software," the duo concludes.

At the end of the month, the fund's three largest holdings were Topicus.com, Sectra, and Dynavox Group, with portfolio weights of 6.2, 6.1, and 6.0 percent respectively. The largest sectors were technology, healthcare, and industry, with allocations of 73.4, 13.8, and 8.8 percent.

In terms of geographic distribution, Sweden had the largest capital allocation at 53 percent, followed by Canada and the US at 13.5 and 12.2 percent respectively.

Lannebo Teknik Småbolag, % June, 2025
Fund MoM, change in percent 3.1
Index MoM, change in percent 7.6
Fund YTD, change in percent -2.8
Index YTD, change in percent -10.4