Monthly report October 2025 of the zCapital Swiss Small & Mid Cap Fund (class A)
In October, the fund gained 2.7% (SPI Extra +2.7%). We took advantage of the slump in Aryzta's share price to build a position. We also participated in the placement of Galderma shares and added to positions in EMS-Chemie and Belimo. We realised gains on BKW, Hiag Immobilien and Flughafen Zürich.
Despite the US government shutdown, markets continued to rise. Increased volatility was caused by the trade dispute between China and the US over the course of the month. Inflation data, which were slightly below forecasts, fuelled hopes of an interest rate cut. The US central bank met these expectations. However, the stock market initially reacted negatively to Jerome Powell's comment that an interest rate cut in December was not yet a done deal.
There are growing indications that the industrial sector is encountering stronger headwinds from China. Individual companies are reporting delays to major projects. There is also no sign of recovery in the automotive industry. Positive standouts at the moment are investments in data centers, which are in the triple-digit billions USD. US politicians and investors are showing little interest in the government shutdown, which has now been ongoing for a month. These and other political uncertainties will continue to influence stock markets.
