Viktor Lindell has been writing about Scandinavian small caps. 
Small-cap companies, regardless of geographical region, have experienced an almost historically difficult period over the last few years, especially relative to large-cap companies. As seen in the image below, one has to go all the way back to the 1990s to find a period where European small caps have had such a weak relative performance compared to large caps. Very recently, there has been some nascent optimism regarding small caps as their valuation levels have dropped quite low in many places, while at the same time, slight positivity can be observed in the economic outlook. It is also worth noting that share price performance has been better in small caps with slightly larger market capitalizations compared to the performance of the smallest companies, i.e., micro-caps, where it has been more modest. In the investment markets, it is quite typical that when market sentiment improves, capital flows down through company size categories—first into larger small caps and then further down, so that micro-caps are the last in line. When the market regains interest in micro-caps, quite large movements can occur, partly due to limited supply.
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Olli Viitikko has written about Helsinki’s (Hesuli) large companies.
First, an announcement. Proprius Partners’ assets under management have risen to 200 million euros. We are proud and grateful that you have made reaching this milestone possible. We will continue to strive to be worthy of your trust.
After 2024, many Finnish equity investors were completely discouraged. The US stock market once again blasted impressive gains onto the board, while Finland continued to stall, and the journey for small and mid-cap companies in particular was an uphill battle. At the same time, the air had been thoroughly knocked out of the prices of many Finnish stocks. This created a starting point that few dared to even dream of: the Helsinki Stock Exchange (OMX Helsinki Cap GI) rose a sweet 35.3 percent including dividends in 2025, driven particularly by large companies.
In the wake of last year’s rally, it is worth taking a moment to look at what the valuation levels of the Helsinki Stock Exchange look like after the first steps of 2026, as significant moves (mostly upwards) were seen in many stocks.
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Mika Heikkilä has written about the Q4/2025 earnings season.
The year 2025 was excellent for companies on the Helsinki Stock Exchange. The rise in share prices, especially toward the end of the year, pushed up companies’ valuation multiples, so there was even more interest than usual in the past Q4/2025 earnings season. How did the companies’ year-end go? How were geopolitical changes reflected in the results? And most importantly, what will the year 2026 look like in the guidance? During week 8, the first winter holidays are held, and most companies schedule their earnings releases for the preceding week. Therefore, the mornings of the week before the winter holidays in particular were busy with reading and updating. Although information is processed and compared increasingly faster, the initial reactions in the morning (and even on the result day) often seem drastic relative to the information provided. Every investor certainly acts according to their own strategy, but at Proprius Partners, as long-term investors, we want to first observe, familiarize ourselves, and even analyze/reflect a bit on what the earnings report has to offer. Based on Finland’s Q4 earnings season, our theme became “buy the dip,” as the share price reactions for so many companies were surprisingly sharp to the downside, even though the announcement itself was quite expected or even promising.
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CEO Niko Fagernäs has penned an AI-themed market letter.
At the beginning of the year, AI-related discussions have taken entirely new turns. The new tools released by AI company Anthropic have caused panic-like “get me out” style movements, at least among those who have invested in software companies. The basic idea is that AI tools and agents are improving so rapidly and yielding so much benefit that they enable a significant catch-up in competitive advantages. New companies can catch up with existing software companies at an incomprehensibly fast pace, as the development cycle has significantly accelerated.
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I’m linking this Kauppalehti article here, where Mika Heikkilä talks about the weak returns of small-cap companies. It’s likely behind a paywall. It reveals a quite essential piece of information for me; I’ve occasionally thought about withdrawing €50,000 and putting it in there. Preferably specifically at a stage when the fund is in the red, because I certainly have confidence in Heikkilä and Viitikko, and those small caps will rise again eventually: Mika Heikkilä näkee pörssin hylkiöissä nyt mahdollisuuksia – ”Kannattaa ottaa salkkuun juuri silloin, kun kaikki muut niitä hylkivät” | Kauppalehti
“Proprius’s Micro Finland fund, whose return at the end of April was approximately seven percent in the red since the fund’s inception.”
”Of course, I would hope that in three years we would be somewhat in the black and could say that we are doing well. On the other hand, I look at the situation and see more opportunities rather than terribly regretting the past. We have a brighter future ahead,” Heikkilä says optimistically.
According to the Fund Report, net subscriptions for the beginning of the year are negative in almost all small-cap funds investing in the Nordic countries or Finland. After redemptions, portfolio managers are forced to sell.
”That’s when the price gives way,” Heikkilä says.
Information on Proprius’s small-cap fund is not included in the Fund Report. According to Heikkilä, there have been no redemptions there. The fund’s redemption fee pricing encourages long-term investments.
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I have long contemplated to what extent the “hurrah” valuations of past years are making small-caps seem cheap now, when in reality, it may just be that valuations were simply irrational before the market downturn. Well, I decided that pearls can still be found among the small-cap “stock vomit,” not just gravel, and I started buying them, including positions from Inderes’s own model portfolio. However, I don’t believe these share prices will turn around until the general economic situation changes, so one must forget about staring at the benchmark index for a few years. It would be nice to know what Proprius has selected from these; naturally, some things can be figured out by browsing the shareholder lists.
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Rather, one should look at which small and medium-sized enterprises they do not own; indeed, almost all of those favorite stocks from the Inderes model portfolio can be found there, along with a large bunch of others. Browsing the thread from the beginning gives some kind of picture. It seems that good manners prevent unit holders from reporting exact figures and ownership stakes here, though there are unlikely to be any actual non-disclosure agreements in place.
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I currently have a very similar strategy. Small caps have been down for a long time now. My gut feeling is that we will soon see a sharp upward move. Even though we were indeed in a bubble at one point, I don’t think that is the only reason small caps look particularly cheap right now. The fact is that many high-quality small caps, including those found in Inderes’ model portfolio, are trading at absolutely irrational valuation multiples right now, no matter how you look at the situation. The only companies from the model portfolio I’ve avoided are Admicom, Talenom, and Incap. In my opinion, things are still too messy with those for my taste. I hold all the others, though. Remedy, QT, Canatu, Detection Technology, and Revenio are my largest holdings. I’ve taken a position worth several hundred thousand euros, so let’s see how it goes. My bet is that it will go well. It’s good to buy when others are vomiting
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