Nomura Small Cap Value Fund on CACI International Inc.
Thesis
CACI provides technology and services to US intelligence, defense and federal civilian organizations. Its shares fell amid Department of Defense and Department of Homeland Security budget concerns and easing geopolitical tensions. The company also reduced 2026 earnings guidance because of higher interest expense from a recent acquisition. The fund maintained the position because the shares trade at a discounted valuation and the business is viewed as well aligned with US defense and intelligence spending initiatives.
“We maintained the Fund’s position in CACI as its stock trades at a discounted valuation”
Key risks
- Department of Defense and Department of Homeland Security budget concerns
- Higher interest expense associated with a recent acquisition