October: negative month despite strong reports

Inge Heydorn

Finserve Global Technology Fund lost 2.7 percent in October, which was marginally weaker than the Nasdaq Composite Index, which fell 2.4 percent during the period. Since the beginning of the year, the increase totals 32.6 percent. During the same period, Nasdaq increased by 21.6 percent. The month was turbulent in the stock market, where risk appetite declined markedly towards the end of the month, which translated into a broad case for technology-related companies. This is despite the fact that the reports presented were generally better than expected. Of the S&P companies that had reported at the end of the month, 88 percent had met expectations.

Of the Global Technology Fund's holdings, the positions in Activision, ASML, Ubisoft and Zynga weighed. Among the winners were Prosus, Sony, Matchgroup, Servicenow and Nintendo.

This reporting period, we have seen a low correlation between good reports and good share development. It has felt almost completely random. However, our reports have been in line or better than we estimated. The reports have, if anything, strengthened our positive view of the companies and themes included in the portfolio.

During the month, the fund increased its position in Zynga and initiated a position in Paradox Interactive. The entire holding in Slack was sold. After the end of the month, we have received a number of reports that confirm the strong trend we have seen in esports for a long time. Among other things, Activision and Zynga have presented very strong results, despite this, the company's share prices have fallen back somewhat as the market has begun to focus on companies that benefit from a recovery in the economy.

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