Artisan Global Opportunities Fund on L3Harris Technologies, Inc.
Thesis
L3Harris offers exposure to missile defense, space sensing and national security programs. Recent results exceeded expectations, including 15% organic growth, healthy orders and a $41 billion backlog, while international demand accelerated. These operating trends support the manager’s long-term thesis despite weak share-price performance. The position began moving into its Harvest stage as the team reallocated capital elsewhere in industrials.
“While strong bookings and accelerating revenue continue to support our long-term investment thesis”
Key risks
- Investors are concerned about emerging competition.
- Future competitive dynamics could pressure long-term market share.
- Sector valuations and investor expectations face pressure as defense spending shifts among contractors.