Investment universe
The fund is actively managed and invests in small cap equities and equity-related securities listed in the Nordic countries (Sweden, Denmark, Finland, Norway and Iceland). The small cap universe is defined as the stocks in the bottom 20 per cent of the total market cap, approximately 500 companies. Swedish small cap stocks represent approximately 40 per cent of the investment universe’s market cap.
Investment team
Head fund manager Per Trygg has extensive experience managing small cap portfolios. He is also a member of the SEB Nordic/Small Cap team, which consists of four investment professionals. The team members are experienced and benefit from an open exchange of ideas and knowledge. The fund manager makes the final decision regarding which investments to make. The team is based in Stockholm.
Research
The fund is characterised by a bottom-up strategy, where stock selection is based on fundamental company analysis. To identify attractive companies, the team conducts intensive field work in the Nordic small cap universe. The research focuses on identifying attractively valued companies. The team looks for quality companies with strong market positions and above average return on investment. Management quality and strategy are key criteria.
Portfolio construction
The team focuses on identifying the best small cap stocks in the region, regardless of which country the stock is listed in. The fund normally has 40 to 80 holdings. Due to the fund’s bottom-up approach its composition and performance can deviate from the benchmark. The active risk, as measured by tracking error and active share, is expected to be higher than for comparable funds.