Espiria Sweden Small Cap

An actively managed Swedish equity fund that invests in small-cap companies with the potential to outperform through structural change or revaluation. Espiria Sweden Small Cap offers a dynamic strategy driven by stock picking. The fund is managed with an agile and concentrated approach - we capture opportunities where others may not be looking.

With vast experience in the Nordic equity markets, our portfolio managers offer the judgment needed to navigate shifting market conditions. Our broad sector knowledge and strong analytical skills enable us to invest confidently across industries - seeking out companies undergoing meaningful change.

The fund combines short-term tactical flexibility with a long-term conviction-driven approach. We manage a concentrated portfolio of 30–45 holdings, selected for their potential to contribute to long-term returns in a volatile and fast-changing market environment.

Espiria Sweden Small Cap primarily invests in Swedish equities but may also invest up to 25% in other Nordic equity markets to create a diversified portfolio and capture attractive companies.

The small-cap universe offers a rich landscape of opportunity, yet many funds end up clustered around the same names. As these funds grow, they often drift towards larger, more liquid companies - diluting the essence of small-cap investing.

Take the 10 largest Swedish small-cap funds as an example:

The 20 most commonly held companies appear in at least 60% of their portfolios. On average, these names make up 45% of each fund’s holdings - and with an average market capitalisation of around SEK 68 billion, they can hardly be considered “small”.

Espiria Sweden Small Cap is different by design. The ambition is to deliver value by finding companies that are less covered and not among the “usual suspects”. We put less focus on the crowded names, preferring to go deeper and uncover companies others have overlooked. We invest in businesses that are smaller in size, but rich in potential — those undergoing meaningful change or in special situations. This could mean they are early in their value creation journeys, looking at a spin-off or where we see the market is
underestimating the transformation.

We are sector-agnostic, flexible in time horizon, and rigorous in our research. Whether it’s a short-term revaluation or a long-term transformation story, we look for companies where positive may be underway — and where the market has not yet caught up.

We don’t follow the index. We follow the change.

• Fundamental assessment of investment opportunities
• Portfolio construction driven by research and evaluation, not index alignment
• High-conviction approach to all investments
• Exposure to companies often overlooked by larger peers
• Flexibility to invest across sectors and market conditions
• Managed by a highly experienced core equity team