What smart money is saying about Karman Holdings Inc.
KRMN · Industrials · Aerospace & Defense · Market cap $7.16B
2 funds in our archive have pitched Karman Holdings Inc. — most recently Baron Discovery Fund in June 2026.
Company profile
Karman Holdings Inc., primarily operating through its Karman Space and Defense division, specializes in the design, rigorous testing, production, and sale of vital systems. These critical components are integral to sectors such as missile and defense, various space programs, hypersonic flight, and launch vehicle technologies. The company's offerings also encompass aerospace-grade metallic and composite flight hardware, alongside their necessary sub-assemblies. Additionally, Karman Holdings provides comprehensive solutions for key elements including payload protection and deployment systems, aerodynamic interstage structures, and propulsion units. Established in 2020, the enterprise is based in Huntington Beach, California, and is ultimately owned by its parent company, TCFIII Spaceco SPV LP.
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5
Reported positions
0
Bought
1
Sold
7
Letters
Position history
Between Q1 2026 and Q2 2026, 5 fund letters reported a position in Karman Holdings Inc. — 1 trimmed or exited.
| Quarter | Letters | Bought | Sold | Theses |
|---|---|---|---|---|
| Q2 2026 | 4 | 0 | 0 | 2 |
| Q1 2026 | 1 | 0 | 1 | 0 |
Fund activity · 5 positions · 1 move
- June 2026
“PORTFOLIO UPDATE Class A shares of the Alger Small Cap Focus Fund outperformed the Russell 2000 Growth Index during the second quarter of 2026. Nebius Group, Credo Technology Group, and Guardant Health, Inc. were among the top contributors to performance. • Nebius Group is a specialized AI infrastructure company that provides a full-stack platform, including GPU-accelerated cloud computing, to help enterprises build, train, and deploy large-scale artificial intelligence models. The company has positioned itself as a leading next-generation cloud provider purpose-built for machine learning and high-performance computing workloads. We believe the company’s appeal is anchored by its vertically integrated approach, which combines proprietary data center design with in-house software to deliver superior performance and lower operating costs compared to traditional GPU cloud providers. Shares contributed positively to performance after the company reported better-than-expected revenues, driven by surging demand for AI computing power. Nebius also announced a 1.2 gigawatt data center campus and closed a strategic acquisition that strengthened its model optimization capabilities. Portfolio Management Investment Strategy Invests in a focused portfolio of approximately 50 holdings of primarily small cap companies identified through our fundamental research as demonstrating promising growth potential. Seeks long-term capital appreciation. Amy Zhang, CFA Executive Vice President Portfolio Manager 31 Years Investment Experience Benchmark Russell 2000 Growth Index Ticker Symbols Class A AOFAX Class C AOFCX Class I AOFIX Class Y AOFYX Class Z AGOZX Standardized performance is available on page 3. C APITAL APPRE CIATION 2 /4 SMALL CAP FOCUS 2 / 3 2nd Quarter 2026 • Credo Technology provides high-speed connectivity solutions used to move data across AI data centers and hyperscale networks, including active electrical cables, optical digital signal processors, and PCIe retimers. As AI systems become larger and more complex, the need to move data quickly and efficiently between servers, GPUs, and networking equipment has become increasingly important. We believe Credo benefits from this growing connectivity challenge, with an expanding product portfolio that gives the company multiple opportunities to support next-generation data center architectures. During the quarter, shares contributed positively to performance as investors responded favorably to the company’s rapid revenue growth and rising demand from hyperscale customers. Investor sentiment was further supported by the view that Credo’s expanding product portfolio and recent silicon photonics capabilities could help the company remain well aligned with the evolving connectivity needs of AI data centers. • Guardant Health is a precision oncology company that develops blood-based liquid biopsy tests spanning therapy selection, recurrence monitoring, and early cancer detection, anchored by its Guardant360, Reveal, and Shield platforms. We continue to view the company as one of the more strategically positioned names in molecular diagnostics, with leadership in liquid biopsy supported by a deep clinical evidence base, an expanding set of companion diagnostic labels, and a credible runway toward free cash flow breakeven. Shares contributed positively to performance during the quarter, advancing on first-quarter results that prompted management to raise full-year 2026 revenue guidance, the inclusion of the Shield blood test in updated colorectal cancer screening guidelines, and regulatory approval of Guardant360 CDx as a companion diagnostic for Boehringer Ingelheim's Hernexeos. Karman Holdings Inc., GeneDx Holdings Corp., and Forte Biosciences Inc. were among the top detractors from performance.”
Karman Holdings Inc. - HoldsBaron SMID Cap ETFJune 2026
“Karman Holdings Inc. designs, tests, and manufactures mission-critical systems for existing and emerging missile and space programs, which are some of the growthiest and in-demand segments of the defense industry.”
Karman Holdings Inc. - June 2026
“On the negative side, Karman Holdings, a supplier of defense and space-systems components serving tactical missile, missile defense, hypersonic, space launch and submarine applications, was the region's largest detractor, falling -38%.”
Karman Holdings Inc. - June 2026
“Karman Holdings Inc. designs, tests, and manufactures mission- critical systems for existing and emerging missile and space programs, which are some of the growthiest and in-demand segments of the defense industry.”
Karman Holdings Inc. - March 2026
“Karman Holdings Inc. is engaged in the design, test, and manufacture of mission-critical missile systems. announced the acquisition of Seemann Composites and Materials Sciences, a strategic move extending its reach into the high-priority maritime defense market. This momentum was compounded by solid fourth-quarter earnings. Additionally, the stock is benefiting from broader tailwinds in the defense and space sectors, as heightened geopolitical tensions and proposals to increase defense spending have driven investor interest. We trimmed back the position as the stock climbed 10%.”
Karman Holdings Inc.
Also mentioned · 2
These funds discuss Karman Holdings Inc. — as a competitor, benchmark or comparable — without disclosing a position in it.
- MentionedBaron Discovery FundJune 2026
“Top detractors from performance for the quarter Contribution to Return (%) Shake Shack Inc. (0.78) Karman Holdings Inc. (0.69) Kratos Defense & Security Solutions, Inc. (0.56) Guidewire Software, Inc. (0.55) Procore Technologies, Inc. (0.52) Shares of Shake Shack Inc. , the better-burger fast casual concept, detracted from performance in the second quarter. The stock fell sharply after the company reported weaker-than-expected first-quarter earnings, though we believe the reaction reflected poor communication and expectation-setting rather than any deterioration in the underlying business. Same-Shack sales grew 4.6%, including 1.4% in positive traffic, the third consecutive quarter of positive traffic growth, despite a 2.40% weather headwind. Restaurant-level margin expanded 0.5% to 21.2%. While adjusted cash flow (EBITDA) missed expectations, this was due to the timing of some costs (specifically accelerated pre-opening costs as well as the timing of some repair and maintenance costs). Lastly, while trends in April showed weakness, early May rebounded nicely with 8% same-Shack sales and 5% restaurant traffic growth driven by excitement around menu innovation. We continue to believe that Shake Shack is a compelling long-term growth idea and that its valuation is extremely attractive relative to business fundamentals. Karman Holdings Inc. designs, tests, and manufactures mission-critical systems for existing and emerging missile and space programs, which are some of the growthiest and in-demand segments of the defense industry. It has unique experience in complex/proprietary manufacturing methods, high-end materials and composites, and system level design. Nearly 90% of Karman’s sales are sole-sourced from the company, and 94% of its revenue is tied to proprietary IP-driven solutions (including patent-protected technologies). This enables it to drive adjusted cash flow margins in excess of 30%. Shares declined during the quarter for a few reasons.”
Karman Holdings Inc. - June 2026
“Karman Holdings, a supplier of defense and space systems components serving tactical missile, missile defense, hypersonic, space launch and submarine applications, was the sector's largest detractor, falling -38%.”
Karman Holdings Inc.
Fund coverage · 2 theses
- Baron Discovery FundJune 2026
Karman Holdings Inc. makes mission-critical missile and space systems and is positioned to grow well above peers on proprietary content and multi-year defense demand.
Read the full thesis - Baron SMID Cap ETFJune 2026
Karman Holdings Inc. has proprietary, mission-critical defense systems, high-margin economics, and strong organic growth supported by missile production tailwinds.
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