The fund participated in two IPOs

Mildef manufactures rugged electronics, which means computers, monitors and communication equipment that can withstand wear and temperature changes. We believe this company was overlooked in the torrent of IPOs because it is small, has a special niche and has a volatile sales record. We look at it differently, and its size is not an issue for us. We think its niche is highly interesting as the company has certainly proven its ability to take market shares both organically and through strategic acquisitions. We can accept the volatile sales because we are long-term and because we believe that the company will continue to grow at a rapid pace.

With a clear acquisition strategy to create synergies, we believe that the market will up the value of this company when this becomes apparent in combination with continued high margins and strong organic growth. EV/EBITA of 13x on our 2021 forecast is much too low for a growing non-cyclical company that has already proven its business strategy works.

The other new holding, SmartCraft, is a SaaS company aimed at tradespeople. Being focused on one of the least digitalised industries has proven to be just right for the company’s organic growth in recent years. We believe that growth will continue, not least based on our own conversations with SmartCraft’s existing and potential customers. Its software solutions are in demand as they save a lot of administrative time and offer a clearer overview since customers previously did not have any digital tools. We also get support from a statement by a Bonava employee who recently adopted one of SmartCraft’s solutions: “Previously, all notes were made on paper. When it rained, it was actually quite tricky”.

Because SmartCraft is most forward-leaning in the Nordic region in its niche, and is traded at a discount to other SaaS companies, the fund chose to make the company one of its largest holdings.