Pieces in Motion
portfolio update
Hello,
With all portfolio companies except $BCY.SI having now reported their 2025 results, it is finally time for another portfolio update.
Following satisfactory performance in 2023, 2024, and 2025 (discussed in the Panta Rhei article), my portfolio of global micro-caps continued its positive momentum in Q1 2026, rising 12.1%, compared with a 3.1% decline in the MSCI World (EUR) ETF—my opportunity cost if I were not actively stock picking.
It also outperformed the MSCI World Small Cap ETF (EUR), which was flat during the quarter. While I don’t believe investors should judge themselves against benchmarks over the short term, I use this one as a check on whether I’m actually adding value through stock picking or simply benefiting from a strategy of “going smaller.”
At quarter-end, the portfolio consisted of 12 holdings. The top three positions accounted for 48% of capital, while the top five made up 64%. Portfolio beta remained low at 0.62, essentially unchanged from the last update, with only two positions above a beta of 1.
Since the previous update, I initiated three new positions, exited three, traded in and out of two, added to one, and did not trim any. Cash rose from near zero to 7%, largely due to my most recent sale and dividends, and I expect to redeploy that capital soon. The portfolio also ended the quarter with no direct exposure to AI, energy, or commodities.
$SOFW.TA was the top contributor to portfolio performance in Q1, while $8771.T was the main detractor. Japan joined the U.S. as one of the portfolio’s main geographic exposures, and together they now account for roughly 60% of capital.
I once again wrote this update through the lens I care about most—and probably the only one I know: what changed in each business, why it matters, how it affected the risk-reward, and whether it changed my conviction or sizing.
I’m still looking for situations where few are paying attention and even fewer have done the real work, because that’s where fundamentals matter more than themes, sector calls, macro narratives, or market mood. After all, no investor ever steps in the same micro-cap twice, for it’s not the same micro-cap and he’s not the same investor.
What follows are the most important developments across the portfolio, along with my position sizing as of the market close on March 31, 2026. As usual, I’ll go from smallest to largest.