Monthly report May 2026 of the zCapital Swiss Small & Mid Cap Fund (class A)
The fund rose by 2.3% in May (SPI Extra +2.8%). We have built up an underweight position in DSM-Firmenich. In addition, we have purchased more shares in Bossard and Galenica. Conversely, we have exited our positions in Clariant and Ypsomed entirely and reduced our weightings in DKSH and Bachem.
In May, the situation in the Middle East continued to have a significant impact on global financial markets. Periods of hope for a swift agreement were repeatedly followed by setbacks. Despite the challenging environment, stock markets have proven to be highly resilient. In particular, technology-focused stock markets performed exceptionally well. Defensive markets such as Switzerland were less able to capitalise on this.
Although markets have long anticipated the imminent reopening of the Strait of Hormuz, a swift negotiated solution remains uncertain. Meanwhile, optimism continues to dominate the stock markets, led by the boom surrounding artificial intelligence. Rising inflation figures and the accompanying higher long-term interest rates seem to be of little concern. This poses risks, in our view.
