Victory Capital Management Inc. — Sycamore Mid Cap Value Equity on L3Harris Technologies, Inc.
Thesis
L3Harris weakened during a broader defense-sector derating as investors questioned whether the proposed defense budget and its reconciliation package would pass Congress. A material reduction in that package could hurt programs expected to benefit L3Harris, including Golden Dome. The announced spinoff of its missile-solutions division also pressured sentiment. Sycamore nevertheless sees strong momentum across the company's segments and believes it remains well positioned for long-term defense priorities.
“Our thesis for LHX remains intact.”
Key risks
- Cuts or delays to proposed U.S. defense spending
- Reduced funding for programs such as Golden Dome
- Execution risk around the missile-solutions spinoff