(1) Zoom was a clear winner in the early stages of the pandemic, as they were very well positioned to capture the huge influx of demand that arose as companies had to scramble their workforce to a remote work environment. (2) However, our view is that this dynamic is about to change. Our research points towards companies going from extinguishing fires (i.e., picking the nearest and easiest solution to implement), to soberly assessing their solution.

During February we have done a few changes to our portfolio, our top 5 holdings are now the following: Since our last update, we have added to our position in Embracer which is now our largest position. Previously our by far largest investment was Evolution Gaming which rapidly appreciated after the quarterly report, with the report performing in harmony with our expectations

During January we have done a few changes to our portfolio, our top 5 holdings are now the following: We have slightly decreased our position in MGI and Embracer since our update. Nevertheless, we still think the R/R is still decent for both companies and we are likely at some point to increase them to our Top 5 holdings when we assess the opportunity arises again.

1.Evolution is our top pick heading into February. We assess the company’s moat and long-term growth rate as highly misunderstood and often viewed upon with, in our view, undeserved skepticism. 2.We view the acquisition of NetEnt as a rare combination of revenue and margin expansion with tangible opportunities to leverage upon. It is our understanding that Evolution will further strengthen the offering and move more towards becoming a one-stop-shop for operators.

1. A company that has been brewing just outside our Top-5 for some time now is the electroporation (EP) company MaxCyte. Modelio assesses it as one of the best investments to capture the growing gene editing and gene therapy space, especially in allogeneic ex-vivo treatments. 2. We estimate that MaxCyte stands before a huge inflection point that will accelerate both growth and profitability. We have seen signs of the accelerating underlying activity by the fact that they in the last two years have added 9 of their 12 commercial agreements.

We close an eventful 2020 with an uneventful update of our list with our Top 5 holdings going into 2021. December saw renewed strength for our Swedish gaming holdings, with M8G advancing 38% and Embracer 12% respectively. Our Polish holding, 11 Bit Studios ended the month flat. Photocure outperformed the market significantly at 35% for the month, and Smart Eye ended a strong 2020 with a 22% increase in December.

If you are interested in a deeper introduction to each case, we recommend our write-up from early December, which we have linked below.

Smart Eye - The company stands in front of a significant ramp-up of driver monitoring systems (DMS) deliveries accoupled with most likely new and existing design wins. (2) We think that during the next year the fruit of the design-wins will be early but clearly visible to the market, gradually emerging to 30-50 % EBIT-margins in the coming years.

11 Bit Studios S.A - In our opinion, 11 Bit is a high-conviction case, a rare high quality gaming developer with an exceptional track-record. We have previously described the case in a strongly recommended thorough report available here: slideshare.net/ModelioEquity/… (2) We continue to reiterate our view on the case with a current fair value range of approx. 1400-1900 PLN per share (approx. 200-300% upside).

Embracer - This case is a clear exception to our focus on small/nano-cap investments. The reason for this is that we have recognized the position that Embracer has established which allows them to further fuel their organic and acquisition expansion in the games market. (2) We think that the company will successfully take another angle than gaming majors as Activision, EA etc while having a similar AAA-approach but rather build a solid catalog of IP:s and development resources that will cement a growing and durable profitability for generations.