After more than a decade of picking stocks on both the long and short side, veteran fund manager Staffan Östlin is now running a long-only, small-cap equity fund under East Capital’s Espiria brand. Espiria, part of the East Capital Group alongside the hedge fund boutique Adrigo, is launching Espiria Sweden Small Cap, a new actively managed fund targeting Swedish small-cap stocks.

“The Swedish small-cap segment is full of opportunities, but it has become overcrowded around the same names,” says Staffan Östlin, Lead Portfolio Manager for the newly launched fund. “With Espiria Sweden Small Cap, we aim to look further afield – toward companies at the start of their value-creation journey, undergoing crucial transformations, or in unique situations. That’s where we generate real, long-term returns.” Espiria Sweden Small Cap will hold approximately 30 to 45 carefully selected companies, focusing on those experiencing structural change, market mispricings, or untapped potential. It combines short-term tactical flexibility with a disciplined, conviction-driven investment approach.

“With Espiria Sweden Small Cap, we aim to look further afield – toward companies at the start of their value-creation journey, undergoing crucial transformations, or in unique situations. That’s where we generate real, long-term returns.”

Staffan Östlin

With more than 30 years of experience in the Swedish equity market, Östlin brings extensive market knowledge and a disciplined, conviction-driven investment approach. At Espiria, he collaborates closely with Chief Investment Officer Peter van Berlekom. The launch of Espiria Sweden Small Cap represents the next milestone in Espiria’s growth trajectory. Earlier this year, the company’s Nordic Corporate Bond Fund surpassed SEK 5 billion in assets under management, driven by both strong performance and significant net inflows. The new small-cap strategy further broadens and strengthens Espiria’s active management offerings.

“We see strong interest in this launch, particularly from investors seeking genuine small-cap exposure without compromise,” says Nikodemus Dahlgren, Head of Sales at East Capital Group. “The success of our credit strategies clearly demonstrates the strong demand for active, conviction-based management. With Espiria Sweden Small Cap, we bring the same philosophy and dedication to Swedish equities.”

“The success of our credit strategies clearly demonstrates the strong demand for active, conviction-based management. With Espiria Sweden Small Cap, we bring the same philosophy and dedication to Swedish equities.”

Nikodemus Dahlgren, Head of Sales at East Capital Group.

Östlin has been managing the Adrigo Small & Midcap L/S hedge fund since its launch in November 2017, targeting long and short opportunities in the Nordic small- and mid-cap segment. The fund delivered a strong performance in its first three full years, with an annualized return of 15.8 percent from 2018 to 2020, but has faced a more challenging period in recent years, including a 13.4 percent decline in 2024. Building on this extensive experience, Östlin now brings his market insight and disciplined, conviction-driven approach to the long-only segment with the launch of Espiria Sweden Small Cap.