Holdings and
conviction.

Mercury Systems builds the rugged computing boards that process radar and sensor data inside hundreds of military programs. After years of production problems its order book, margins and cash flow have all turned up together, with full year results due in mid August.

Kratos builds jet powered drones cheap enough for the military to treat as expendable, and the Marine Corps has now selected its Valkyrie aircraft through a partnership with Northrop Grumman. Revenue grew 30 percent last quarter and the 2027 budget request would raise funding for autonomous systems from a few hundred million dollars to more than 50 billion, while the stock still trades well below its high.

Elbit builds its own drones, rocket artillery and battlefield software rather than buying those pieces from other firms, which lets it keep more of the profit on every system it sells. Its order book just passed 30 billion dollars for the first time with most of the work now outside Israel, though the shares are expensive against current earnings.

Curtiss Wright makes nuclear propulsion equipment for Navy submarines and rugged computers for military electronics, and orders are running well ahead of sales in both. Most of its growth comes from nuclear work rather than drones or autonomy, and the shares already trade close to their record high.

AeroVironment makes the small drones, one way attack munitions and counter drone systems the US military buys in the largest numbers, and the 2027 budget request funds those exact lines with more than 70 billion dollars. The stock has fallen roughly 60 percent from its high on a weak profit forecast and an accounting restatement, so the demand picture and the share price are pointing in opposite directions.

Ondas spent 2026 buying six defense technology companies, turning a small drone software business into a counter drone and defense platform with a 525 million dollar revenue target. It paid for those deals largely by issuing stock, so the share count is up nearly fourfold in a year, more than 40 percent of the tradable shares are sold short, and the company is valued near 5 billion dollars on under 100 million dollars of actual past revenue.

Planet Labs photographs the entire surface of the earth every day and sells that feed to governments, with defense and intelligence revenue now growing more than 65 percent. The shares fell hard when investors rotated into newly listed space competitors, though profitability is still only around breakeven and the company has registered a large facility to sell more stock.

Red Cat makes the Black Widow reconnaissance drone the US Army selected for its squad level program, and the Army has signalled it intends to buy nearly 6,000 systems over five years, with orders now also arriving from Japan and NATO. Revenue is growing very fast from a small base, but the share price already assumes full rate production succeeds and the company has repeatedly raised money by issuing new shares.

Palantir just posted its fastest growth in years, with revenue up 93 percent and its government business up 90 percent. The Pentagon has turned its battlefield decision software into a permanent program of record, which converts a series of pilot contracts into a durable budget line, though the shares are priced for a great deal of that already.

Northrop Grumman has a record 105 billion dollar order book and raised its profit forecast, helped by a restructured contract for the Sentinel missile program. It has still absorbed about 2 billion dollars of losses on early production of the B 21 bomber, its margin fell against a year ago, and its strength is in large manned platforms rather than the autonomous systems this fund is built around.

Leonardo DRS makes the infrared and electro optical sensors that let missile defense and drone defense systems detect a threat at all. It just posted a record 5.1 billion dollar funded order book, raised its profit outlook, and the shares fell anyway.

Teledyne makes the thermal and imaging sensors built into a very wide range of military hardware, so it benefits no matter which weapons program wins. Business is strong and guidance went up, but the stock sits within about one percent of its record high and is already priced for that.

L3Harris makes military radios, sensors and rocket motors, and it supplies nearly every large defense contractor rather than competing with all of them. It beat expectations and raised its forecast in late July, but the shares fell because a planned spin off of its missile business was delayed to 2027.

Nvidia chips sit inside most of the drones and autonomous systems this fund owns, and the Pentagon has cleared the company to run on its classified networks. The catch is that defense is a rounding error in Nvidia's revenue, so the shares move on data center demand rather than on military budgets.

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