Do You Believe in the Attractive Growth Opportunities in Ralliant Corporation (RAL)?

Core Insights - Prosper Stars & Stripes achieved a net return of +9.8% in Q3 2025, outperforming its peer group which returned +3.8% and the Russell 2000 Index which returned +12.4% [1] - Year-to-date, the fund returned +8.6%, lagging behind the HFRI's +13.6% and the Russell's +10.4% [1] - The fund's long book performed well, while the short book negatively impacted overall performance [1] Company Focus: Ralliant Corporation (NYSE: RAL) - Ralliant Corporation, a precision instruments and engineered products manufacturer, saw a one-month return of 11.83% and a three-month return of 14.27% [2] - As of November 27, 2025, Ralliant's stock closed at $48.78 with a market capitalization of $5.503 billion [2] - The fund initiated a position in Ralliant, which spun out of Fortive in June 2025, and is expected to benefit from an energized leadership and employee base [3] - Ralliant's growth rates and margins are comparable to high-quality industrial stocks, with expectations for stock price appreciation driven by positive earnings revisions and multiple expansion [3] - The company's Sensor & Safety Systems segment is poised to benefit from increased demand in utilities and defense sectors, while the Test and Measurement segment is expected to see improved sales trends due to R&D investments [3] - The price target for Ralliant is projected to exceed $60, based on an expected EV/EBITDA of 15x [3]