BMC Global Select October 2025

The stock markets continued upward during October, largely propelled by the tech companies' investments in AI. We also saw our second US interest rate cut, which added a little fuel to the markets.

Taking a closer look at company-specific positive contributions to the fund's performance, we see that Alphabet, Nvidia, and Amazon were the highest contributors. For now, the markets mostly revolve around tech companies' announced AI investments. Both Alphabet and Amazon saw their share prices rise on reporting day thanks to their good quarterly results beating analysts’ expectations.

The poorest contributors to the fund's performance were Progressive, Wheaton Precious Metals, and Arthur J Gallagher. Insurance companies in general had a tough time in October, which is why Progressive and Arthur J Gallagher both saw a weaker performance. Wheaton's share price decline stemmed from the poor development of the gold price during the month. We believe, however, that Wheaton's revenues will pick up in line with rising returns from gold and silver mines.

During November, our analyst team will undertake three trips to visit some of our companies and to meet interesting companies for our funds to potentially invest in. The trip to the US will focus on smaller companies, while the other will be to Singapore and Japan. The Japanese equity market is undergoing exciting changes, with companies being required to focus more on profitability and to significantly reduce cross-ownership between Japanese companies. 

We have written about our various analyst trips on our website https://www.bmcapital.se/en/blogg. You can also find shorter posts about these trips and our company meetings on our LinkedIn page.

We also take this opportunity to announce the establishment of two new funds that will launch on 30 November. BMC International (excl. US) will focus on investing in exciting stocks we identify across Europe and Asia. BMC Global Technology will invest in global tech companies and those that benefit from technological developments in the market.

Key market events and trends

The most distinct trend in the market at present is AI. Interestingly, Nvidia's market cap is now bordering on the astronomical figure of USD 5,000bn, which is nearly five times the size of the combined market cap of the Swedish stock market. We bought Nvidia (which remains in our portfolio) in 2018, and since then, the share price has risen more than 4,200%. Other dominant companies seeing their share prices benefit from the AI trend are Microsoft, Alphabet, and Amazon (all holdings), all of which delivered solid reports for the third quarter. During October, the much-discussed OpenAI announced several orders and as well as collaborations with the likes of AMD, SK-Hynix, and Microsoft, which have driven share prices higher. The stellar reports from software and semiconductor giants, in combination with the positie news flow from OpenAI, have spurred the S&P 500 index to new all-time highs in dollar terms.

During the month, we also received that second, long-awaited interest rate cut from the Fed. The Fed's next interest rate announcement will be in December, although the likelihood of further rate cuts has now decreased. We have been impressed by the ongoing robust movements in the market, given that the US government is, for the time being, in shutdown. Donald Trump is more concerned at the moment with brokering a peace deal between Israel and Hamas and with visiting China's Xi Jinping than with reaching an agreement with the Democrats on restarting the government machinery. 

Portfolio changes

During the month, we made a raft of changes to further refine our portfolio. We bought four new Special Situations and one new Champion, while we sold two Special Situations and two Champions. October was something of a historic month for us, as we bought our first two Japanese companies: Kyoto Financial Group and Kandenko. Kandenko, which took a Champions spot in our portfolio, is a company working widely across infrastructure and installation. One of the several things we like about Kandenko is that it is a key player in building new data centers in Japan. Kyoto Financial Group is a bank based in the beautiful, ancient imperial city of Kyoto. We see considerable upside potential in the share price looking at the bank's new profitability targets and its sizable investment portfolio that we expect it will soon start selling off. Kyoto Financial Group is the ninth-largest owner in Nintendo, for example, with an ownership stake of around 3%. The bank took a Special Situations spot in our fund. 

Two other Special Situations we bought into were the US semiconductor firms AMD and Micron. AMD specilializes in CPUs and GPUs, and OpenAI recently announced a partnership with the company. Micron delivers HBM (High Bandwitdh Memory) to data centers that focus on AI. As we noted above, OpenAI is one of the hottest companies in the US right now and is doing business with Nvidia, AMD, Microsoft, and SK Hynix, among others. Our fourth Special Situations was security company Verisure, which we brought into as part of its IPO in October. 

To finance these new purchases, we took profits in US Special Situations stock DR Horton (construction). We also sold France's Saint Gobain (Special Situation), Watsco (Champion), and S&P Global (also a Champion). Although both Watsco and S&P Global have seen a weaker performance this year, both companies have offered great contributions to returns during their time in the fund.

The fund's positioning

When we start a new month, we believe we have the strongest portfolio, based on prevailing conditions. The same is true this month, too. We work continuously with the portfolio to ensure that the holdings we have invested in are those we believe are the best to own in the prevailing market climate. We still see significant potential in semiconductor and software firms thanks to all the investments being made in AI. Projected and aggregated profit growth for BMC Global Select is around 25%. We have taken and will continue to take analyst trips that focus on South East Asia, India, and Poland, which we believe will bear fruit in the future. 

We thank you for your continued faith in us in investing your capital

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