Prosper Stars & Stripes, a long/short equity fund, recently released its first-quarter 2026 investor letter. A copy of the letter is available to download here. In Q1 2026, the portfolio underperformed with a net return of (-5.6%) compared to the Russell 2000 Index's +0.9% return and the HFRX Equity Hedge Index's -1.5% return. Long book performance was negative, while the short book contributed positively. Geopolitics significantly influenced the first quarter, contributing to increased inflation pressures and elevated energy prices. Additionally, you can review the Portfolio's top 5 holdings to see its best picks for 2026.
In its first-quarter 2026 investor letter, Prosper Stars & Stripes highlighted York ***** e Systems, Inc. (NYSE:YSS). York ***** e Systems, Inc. (NYSE:YSS) is a ***** e and defense company that provides a comprehensive suite of mission-critical solutions. On June 17, 2026, York ***** e Systems, Inc. (NYSE:YSS) closed at $30.30 per share. One-month return of York ***** e Systems, Inc. (NYSE:YSS) was 6.50%, and its shares gained 71.38% over the last three months. York ***** e Systems, Inc. (NYSE:YSS) has a market capitalization of $3.93 billion.
Prosper Stars & Stripes stated the following regarding York ***** e Systems, Inc. (NYSE:YSS) in its Q1 2026 investor letter:
"York ***** e Systems, Inc. (NYSE:YSS) was the largest detractor in our long book in the quarter. The company is a ***** e and defense prime contractor, with hardware and software capabilities that enable it to meet a wide range of mission requirements. Its offering is the satellite "bus," the functional backbone of any ***** ecraft which integrates the power, altitude & orbit control, thermal control, telemetry, tracking & command, and structural integrity which is then coupled with the satellite payload. York is founder led, with its CEO Dirk Wallinger, seasoned with experience at Orbital Sciences, General Dynamics, and Lockheed Martin. The company's vertically integrated model allows it to manufacture satellites approximately 20% faster and at 50% lower cost than its competitors. York currently has 33 satellites in orbit, with more than 100 additional units expected to be delivered over the next 21 months, providing strong revenue visibility. ***** e remains a major focus area for the U.S. Department of War, particularly through initiatives such as the ***** e Development Agency, which is targeting a proliferated constellation of roughly 1,000 satellites in low Earth orbit by the end of 2026. Despite these favorable fundamentals, the January IPO traded below its offering price, triggering technical selling in a temporarily soft aerospace and defense market. Following its first earnings report as a public company, the stock recovered. However, we exited our position as the visibility into funding and competition became more difficult to confidently discern."
In its first-quarter 2026 investor letter, Prosper Stars & Stripes highlighted York ***** e Systems, Inc. (NYSE:YSS). York ***** e Systems, Inc. (NYSE:YSS) is a ***** e and defense company that provides a comprehensive suite of mission-critical solutions. On June 17, 2026, York ***** e Systems, Inc. (NYSE:YSS) closed at $30.30 per share. One-month return of York ***** e Systems, Inc. (NYSE:YSS) was 6.50%, and its shares gained 71.38% over the last three months. York ***** e Systems, Inc. (NYSE:YSS) has a market capitalization of $3.93 billion.
Prosper Stars & Stripes stated the following regarding York ***** e Systems, Inc. (NYSE:YSS) in its Q1 2026 investor letter:
"York ***** e Systems, Inc. (NYSE:YSS) was the largest detractor in our long book in the quarter. The company is a ***** e and defense prime contractor, with hardware and software capabilities that enable it to meet a wide range of mission requirements. Its offering is the satellite "bus," the functional backbone of any ***** ecraft which integrates the power, altitude & orbit control, thermal control, telemetry, tracking & command, and structural integrity which is then coupled with the satellite payload. York is founder led, with its CEO Dirk Wallinger, seasoned with experience at Orbital Sciences, General Dynamics, and Lockheed Martin. The company's vertically integrated model allows it to manufacture satellites approximately 20% faster and at 50% lower cost than its competitors. York currently has 33 satellites in orbit, with more than 100 additional units expected to be delivered over the next 21 months, providing strong revenue visibility. ***** e remains a major focus area for the U.S. Department of War, particularly through initiatives such as the ***** e Development Agency, which is targeting a proliferated constellation of roughly 1,000 satellites in low Earth orbit by the end of 2026. Despite these favorable fundamentals, the January IPO traded below its offering price, triggering technical selling in a temporarily soft aerospace and defense market. Following its first earnings report as a public company, the stock recovered. However, we exited our position as the visibility into funding and competition became more difficult to confidently discern."
4 months ago
