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$NEOAERO The portfolio is being rebalanced to better align with the expected macro environment of declining interest rates. Large, established defense primes such as Lockheed Martin (LMT) and L3Harris (LHX) provide stability but are less sensitive to lower borrowing costs and cyclical expansion. Their allocations are being reduced to free up capital for higher-growth, rate-sensitive names. Increased allocations are directed toward mid-cap innovators and suppliers that benefit more directly from cheaper financing and accelerating aerospace demand. Companies like Howmet (HWM) and HEICO (HEI) are well positioned in the commercial aerospace supply chain, while AeroVironment (AVAV) and Iridium (IRDM) stand to gain from rising adoption of unmanned systems and satellite communications. Teradyne (TER) is included for exposure to cyclical test and automation demand, which typically recovers strongly as capital expenditure accelerates in a lower-rate environment. The overweight in Rocket Lab (RKLB) is maintained, reflecting its high growth potential in launch services and space infrastructure, though its position will be monitored for volatility. Exposure to ARKX ETF provides diversified satellite and space-related holdings, but its share is trimmed to emphasize targeted stock selection. Overall, the rebalanced portfolio tilts away from low-volatility, budget-driven defense primes and toward innovative, growth-oriented aerospace and space companies expected to benefit most from a rate-driven upcycle.

rebalancing the portfolio and reducing cash holding. there are two levers we like - pressure to democratize the rocket launch and more investment in drones

reduce BIL hedging and increase more RKLB holdings - 🚀🚀🚀🚀🚀🚀🚀🚀🚀