HMKIY - Protean Funds Scandinavia AB May 2025 Partner Letter

2025-06-04 05:15:00 ET

Summary

• Protean Small Cap outperformed its benchmark, returning 5.5% in May and 48.3% since inception, thanks to an opportunistic, high-turnover approach.
• We see significant upside in Arjo due to low valuation, operational stability, and a new leadership focus on efficiency and core business.
• Investment companies, once attractive at deep discounts, now look overvalued; we expect underperformance as discounts revert to historical norms.
• Our funds prioritize active management, risk/reward, and long-term outperformance, with fee reductions as assets grow and a commitment to investor alignment.

Small caps, big returns - May 2025

Dear Partners,

Protean Small Cap returned 5.5% in May, outperforming its index by 2.5% points. Since launching in June 2023, it has gained 48.3%, which is 28.8%-points ahead of the Carnegie Nordic Small Cap Index....

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