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November was a strong month for the fund with a return of 4.92 %, which lifts the year's total return to over 34 %. This positive development was due to several factors, including continued strong demand for European defense, impressive reports from US cyber security companies and general market optimism associated with Donald Trump's re-election as US President.
Highest and lowest development during the month
| Highest Development | Lowest Development | ||
| Rheinmetall | 31,59 % | Booz Allen Hamilton | -18,43 % |
| Fortinet | 20,84 % | CACI International | -16,77 % |
| Hensoldt | 17,80 % | SAIC | -13,89 % |
| Crowdstrike | 16,54 % | Leidos | -9,70 % |
| Leonardo | 15,93 % | AeroVironment | -9,52 % |
Market development
On the global stage, geopolitical tensions remain high. In Europe, two serious incidents where underwater cables in the Baltic Sea were damaged were reported in November. A telecommunications cable between Finland and Germany and an internet cable between Lithuania and Sweden's Gotland were damaged, which has raised suspicions of sabotage. The events were described by Germany's defense minister as possible hybrid attacks, and both Sweden and Lithuania expressed concern and demanded action. These incidents highlight the increasing importance of cyber security and hybrid defense in today's security landscape.
In the Middle East, an important ceasefire was reached between Israel and Hezbollah on 27 November. Israeli Prime Minister Netanyahu has subsequently emphasized that the country's focus is now shifting to the threat from Iran, which could have far-reaching security policy consequences in the region.
In the US, Donald Trump has unveiled a new advisory commission, the Department of Government Efficiency (DOGE), led by Elon Musk and Vivek Ramaswamy. The purpose of DOGE is to streamline the US government by reducing inefficiencies, eliminating unnecessary agencies and simplifying regulations. In the short term, this has led to price falls for some companies in our portfolio including Booz Allen Hamilton, Leidos and CACI as the market reacts to uncertainty around upcoming budget changes. However, we are positive about their long-term potential. DOGE's focus on technology-driven solutions, such as AI and cyber security, creates new opportunities for these companies to contribute to a more efficient government. Therefore, our exposure to these stocks remained unchanged.
We also view cyber security companies in the US positively going forward. In addition to the aforementioned argument, several of our holdings delivered positive reports for Q3.
Palo Alto Networks beat expectations with revenue growth of 14 % to $2.1 billion and forecasts annual growth of 31-32 % for 2025. Fortinet reported revenue growth of 13 % to $1.508 billion, with their gross margin reaching a record 83.2 %. Fortinet's leadership in the cybersecurity market is reinforced by its recognition this year in several Gartner Magic Quadrants, including SD-WAN and Network Firewalls.
CrowdStrike, which also delivered strong results, reported a 29 % revenue increase to over $1 billion, driven by success with the Falcon Flex model that has attracted more customers to their platform.