A decisive election result – check. Strong earnings reports – check. Does this pave the way for a Santa Claus rally (and continued momentum into 2025)? The market often carries an underlying optimism. Over time, things improve, and companies continue to create value. Yet, there is always something new to worry about. This month’s flavor of concern is less about the U.S. economy performing well and more about challenges closer to home. Government crises in both France and Germany — Europe’s largest economies. Around the time of the global financial crisis, less than a generation ago, the U.S. and European economies were roughly the same size. Today, the U.S. economy is twice as large.

The innovative strength, clearly evident in financial markets, has simply been much stronger across the Atlantic. While the EU may be world-class at passing regulations, this has not resulted in the creation of significant new companies. Many are grappling with this realization: Can Europe change? Something must happen, or both active and passive capital will continue flowing from Europe to the U.S.

Where does Sweden and the Nordic region fit into this picture? Sweden, in particular, stands out in terms of innovation and the efficiency of its business ecosystem. New AI-based tools will empower those who embrace them, enabling the development of better and faster products and services. Sweden’s cultural tendencies toward curiosity and adopting new technologies may once again play to its advantage.

Focusing on our core sectors, we see that the premium investors are willing to pay for U.S. software companies relative to Nordic ones has never been higher. This is despite revenue and profit growth now converging—and even shifting to the Nordics’ favor.

TIN Ny Teknik

Novo Nordisk increased its revenue by 24%, driven primarily by diabetes and obesity treatments. The company’s biggest challenge remains expanding production capacity—demand far exceeds current supply. While Novo is among the best in the industry on this front, scaling up naturally brings challenges. We are also awaiting regulatory decisions from U.S. and European competition authorities regarding Novo Foundation’s acquisition of Catalent and the proposed resale of three factories to Novo Nordisk. As in previous decades, pricing dynamics in the U.S. and potential scrutiny from the American administration add uncertainty. Overall, however, Novo Nordisk’s outlook remains exceptionally strong.

Staying in Denmark, Chemometec issued a positive trading update for the July-September period (it only reports full half-year and annual results). Revenue grew by 27%, driven by a 61% increase in instrument sales. This growth followed a prior sales decline, which made year-over-year comparisons easier. Nonetheless, the recovery was earlier and stronger than anticipated, leading to a significant stock price increase.

Genovis delivered a robust Q3 performance, driven by significant growth in its enzyme business. Adjusted for divestitures, revenue grew by 24%. The earlier sale of the antibody business freed up resources and allowed the company to focus on its enzyme portfolio, reflected in the strong report. Sales of enzymes for analytical applications hit a record high, with ADC technologies in high demand across all major markets contributing significantly. Operating profit doubled year-over-year, underscoring Genovis’ profitability and operational efficiency.

Our latest portfolio addition, Yubico, posted an impressive 45% revenue growth in Q3, driven by strong demand for its security solutions. Annual subscription revenue also grew by 15%, highlighting the increasing importance of recurring income streams. The company’s long-term strategy of expanding customer relationships has paid off, with much of the growth coming from existing customers broadening their use of YubiKeys.

During the quarter, Yubico achieved record operating profits with an improved operating margin of 19%, thanks to efficiencies and a stable gross margin. Orders increased by over 50%, further strengthening the company’s prospects. A notable milestone was its partnership with PKO Bank in Poland, enabling secure logins for 12 million customers with YubiKeys. This success represents a significant step in Yubico’s expansion into the financial segment, a market with substantial growth potential.

With all Q3 reports in, we are pleased with this earnings season. Most portfolio companies delivered results that met or exceeded our expectations.

The holdings that contributed the most to returns during the month were Surgical Science, Chemometec, and Hubspot. Among the holdings that negatively impacted the month were Novo Nordisk, Nordic Semiconductor, and Evolution.

The fund's largest holdings at the end of the month were Surgical Science, Novo Nordisk and Sectra. The fund's primary segments comprise Software (45% of managed capital), Health (36%), and Digital Brands (9%). For a list of the top ten holdings, see tinfonder.se/tin-new-technology.

TIN World Tech

Nvidia once again delivered impressive revenue growth of 94% to USD 35.1 billion for the third quarter, driven by continued strong demand for AI infrastructure. The data center segment, which accounted for the majority of the growth, increased by 17% quarter-over-quarter, fueled by the Hopper platform for generative AI and LLM applications. The gaming segment also contributed with 15% year-over-year growth, thanks to the success of the GeForce RTX 40 series graphics cards. High demand for the new Blackwell platform is expected to continue into the fourth quarter.

Cybersecurity firm Palo Alto Networks increased revenue by 14% to USD 2.1 billion, with annual recurring revenue (ARR) from what the company calls "next-generation security" rising 40% to USD 4.5 billion in the first quarter. The company highlighted its platform strategy as a key driver for long-term growth, with Cortex reaching USD 1 billion in ARR and a strong focus on AI-driven security solutions. Despite the strong results, the stock dropped 6% after the report, primarily due to a 14% decline in recorded billings compared to the previous year, which was about 20% below market expectations. However, Palo Alto emphasized that its focus has shifted to RPO (remaining performance obligations), facilitating larger deals, which grew by 20%.

Staying within the cybersecurity theme, we want to highlight that Fortinet has been added to the portfolio. At its recent analyst day, Fortinet outlined several long-term growth opportunities that strengthen its position in cybersecurity. The company set goals for annual revenue growth of over 12% and an EBIT margin above 30% over the next 3–5 years. It also sees significant upselling opportunities tied to upcoming upgrade cycles in 2025/2026. Like Palo Alto Networks, Fortinet has a strong focus on AI, with over 500 AI-related patents granted or under review, showcasing its commitment to integrating AI into its products. With a broad product portfolio and innovation in areas such as operational technology security and SASE, Fortinet solidifies its market leadership.

Xero, a shared holding in both funds, reported revenue growth of 25% for its broken fiscal half-year 2025, reaching NZD 996 million, again exceeding the "Rule of 40" with a combined revenue growth and EBITDA margin of 44%. The company demonstrated improved product development speed through its focused 3x3 strategy, resulting in faster launches of new functionality. This contributed especially to key markets in the US and the UK, while the home market of Australia continues to perform strongly. Partnerships are a crucial part of Xero's strategy, with 70% of its sales coming through collaborations. Key initiatives in the US market include partnerships with Bill.com for account management and payments, as well as Gusto for an embedded payroll solution. Payroll customers generate nearly double the average revenue per user (ARPU) compared to the base level, highlighting the potential to broaden offerings and increase revenue per customer.

Australian REA reported revenue growth of 21% in the latest quarter, with EBITDA up 23%. Its core business in Australia continues to drive growth, with revenue up 20%, primarily due to strong performance in the residential and commercial segments. Residential revenue grew 23%, driven by a 15% increase in revenue per ad and 7% growth in new ad volumes. Internationally, India delivered revenue growth of 42%, driven by strong growth from its own platform and continued momentum for Housing.com. REA's platform attracts an average of 132 million monthly visits, with buyer inquiries increasing by 7% during the period. The company continues to benefit from its strong position in the Australian market, complemented by international growth.

With all third-quarter reports in, we can conclude that it has been a reporting period we are overall satisfied with. Most portfolio companies have delivered strong results that meet or exceed our expectations. It is also particularly exciting to welcome Fortinet and Amazon as new additions to the portfolio.

The holdings that contributed most to the fund's return during the month were Xero, Salesforce, and Globus Medical. Conversely, Novo Nordisk, Nordic Semiconductor, and TeamViewer had a negative impact.

As of the end of the month, the fund's three largest holdings were Microsoft, Alphabet, and Salesforce. The fund's largest segment is Software, accounting for 62% of managed capital, followed by Health at 19% and Digital Brands at 8%. For a list of the top ten holdings, please visit tinfonder.se/innehav-twt/.

De tre största innehaven i fonden var vid månadsskiftet Microsoft, Alphabet och Salesforce. Fondens största segment är Mjukvara, som utgör 62 procent av förvaltat kapital, följt av Hälsa på 19 procent och Digitala varumärken på 8 procent. För en lista över de tio största innehaven se tinfonder.se/en-us/funds/tin-world-tech.