Monthly report July 2025 of the zCapital Swiss Small & Mid Cap Fund (class A)
In July, the fund increased by 2.4% (SPI Extra +2.4%). We participated in another share placement of Galderma. Additionally, we increased our exposure to Belimo, Interroll, and Vontobel. Conversely, we realised gains on R&S Group and VAT.
Global stock markets got off to a mixed start in the second half of the year. The passing of Trump's 'One Big Beautiful Bill' primarily boosted the US stock market. In other regions, however, the approaching tariff pause caused caution. In Switzerland, the reporting season started off with a few surprises.
From 7 August, exports from Switzerland shall be subject to a 39% tariff, which many companies will find untenable. US tariffs and trade barriers are causing production shifts, project delays, and extra warehousing. This is resulting in additional costs and lower margins. So far this year, market participants have remained positive on the stock markets, without sufficiently pricing in risks. This could now come back to haunt them.
