BMC Global Small Cap Select October 2025

The strongest contributors to the fund's performance in October were FlatexDegiro, IIFL Finance, and Catena, while the weakest contributors were Truecaller, Thryv, and First Advantage.

The month was characterized by reports, and we initially saw a few good results, including from our strongest performer this month. FlatexDegiro again reported far above expectations and raised its full-year guidance. In recent years, FlatexDegiro has gone from strength to strength, with solid customer intake, higher trading activity, and net interest income that has decreased less than expected thanks to higher customer deposits. Its scalable platform leaves us anticipating increasing incremental earnings on every further euro in revenue. 

Unfortunately, the month ended with several weaker reports, including from our worst performer this month, Truecaller. Its report fell short of the already low expectations. The key reason was the deviation in advertising revenue—owing to click tracking algorithm changes by its largest ad network partner—for which Truecaller received no warning or explanation. The market was blindsided as Truecaller had sounded positive on the outlook for adveritisng revenue at the end of the previous quarter, and the uncertainty about how this will affect coming quarters overshadowed the company once again delivering incredibly strong recurring revenues.

Key market events and trends

We are in the midst of reporting season now, with company's reported and estimated numbers affecting individual share prices. As usual, we are seeing major movements in either direction, especially in small caps, which tend to be more volatile. The global stock markets are still tracking upwards, driven primarily by tech companies' investments in AI, with further upward revisions after the major tech firms reported thier results. 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. During October, 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. 

Portfolio changes

We didn't add any new holdings during October, but we did sell off two positions. We sold Autopartner as the expected improvement in its results failed to materialize and we sold Legacy Housing after few key employees left the company one after another. 

The fund's positioning

The fund currently consists of 36 companies carefully selected on their own merits and exposed to a wide range of sectors and geographies. We believe that a concentrated but also diversified actively managed small cap fund that focuses on stockpicking has the ability to deliver good returns over time to unitholders.

*MSCI ACWI small Cap NTR $ in EUR