Monthly report August 2025 of the zCapital Swiss Small & Mid Cap Fund (class A)
In August, the fund increased by 0.4% (SPI Extra unchanged). We bought shares in Tecan, Vontobel, TX Group and Huber+Suhner. Conversely, we reduced our positions in Roche, VAT, Comet, Komax and R&S Group.
The latest tariff announcements by the US president initially prompted losses in the stock markets. However, the Swiss stock market absorbed the shock surprisingly well. In his Jackson Hole speech, Federal Reserve Chair Jerome Powell deemed the risk of a cooling labour market to be greater than that of further rising inflationary pressure. This was widely interpreted as a clear indication that interest rates would be cut, which triggered a positive reaction in stock markets.
Our portfolio companies are broadly diversified, which gives them greater pricing power and the possibility of relocating production to other countries compared to smaller companies. This enables them to offset some of the customs costs. Once the half-year reporting period is over, the stock market will turn its attention to macroeconomic data and news from the White House. There are unlikely to be any dull moments – stock markets remain challenging.
