The Strand Förmögenhetsfond fund fell 1.57 percent in December, which was worse than the fund's benchmark index, which fell 0.48 percent. This is according to a monthly report written by the fund's managers Frans Wehtje and Simon Tarvainen.

Initially, the managers note that the classic seasonal pattern of strong stock markets in November and December was not repeated in 2024 and highlight Novo Nordisk's share price fall as a contributing reason for the fund's decline.

In the aftermath of the US presidential election, market uncertainty around trade barriers and Donald Trump's inauguration in January 2025 contributed to rising long-term interest rates and cautious signals from the Federal Reserve.

According to the manager, defense spending in Europe will increase significantly, regardless of developments in Ukraine, benefiting European defense companies.

"The president-elect will not settle for the old NATO limit of 2% per year, but is now talking about levels of 5%. This is of course a negotiation game and is probably not even technically possible given the potential availability of military personnel, but the limit will be significantly higher than before, which will benefit defense-related companies in Europe."

Meanwhile, the US looks set to increase its gas exports to Europe and cut taxes, which could stimulate consumption but also increase the budget deficit. In addition, a more positive attitude towards oil production in the US could keep oil prices down.

In Sweden, lower interest rates, tax cuts and wage increases are helping to improve purchasing power, especially for homeowners. This is expected to benefit listed small caps, which are more dependent on the Swedish economy than large global companies.

The manager notes that net flows into Swedish funds have been limited compared to global and North American funds, which has contributed to a significant valuation difference between Swedish and US equities.

However, a weakened krona and a gradually strengthening Swedish economy are supporting Swedish equities, which the manager considers attractive from a valuation perspective.

Finally, the manager expresses optimism about the Stockholm Stock Exchange's development in 2025 and sees good opportunities for Swedish companies to deliver strong returns.

The largest holdings in the fund's equity portfolio at the end of the month were Indutrade, SEB, Autoliv, Castellum and Atlas Copco. The equity weighting amounted to 58.7 percent at month-end.

Strand Förmögenhetsfond, %December, 2024
Fund MM, change in percent-1,57
Index MM, % change-0,48