Management Remarks Weighed on Kratos Defense & Security Solutions (KTOS) in Q4

Core Insights - The Alger Weatherbie Specialized Fund focuses on investing in a portfolio of 50 small and mid-cap companies with promising growth potential, highlighting a strong performance in the US equity market during Q4 2025 with the S&P rising 2.7% [1] - The fund's Class A shares underperformed the Russell 2500 Growth Index in Q4 2025, with contributions from Real Estate and Consumer Staples sectors, while Information Technology and Health Care sectors detracted from performance [1] Company Highlights - Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is a defense technology company focused on affordable unmanned systems, hypersonics, rocket systems, and satellite command-and-control, aligning with U.S. and allied priorities [3] - Kratos experienced a one-month return of 46.53% and a 52-week gain of 233.58%, with a market capitalization of $19.223 billion as of January 22, 2026 [2] - Despite strong fiscal third-quarter operating results, Kratos' shares faced pressure due to a lower-than-expected revenue outlook and cash flow expectations for the fiscal fourth quarter, compounded by delays in cash receipts from the U.S. government shutdown [3]