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]

Core Insights - Ralliant (RAL) reported revenue of $529.1 million for the quarter ended September 2025, showing no change from the same period last year, with an EPS of $0.60 compared to $0 in the previous year [1] - The revenue exceeded the Zacks Consensus Estimate of $519.14 million by +1.92%, and the EPS also surpassed the consensus estimate of $0.58 by +3.45% [1] Financial Performance - Revenue from Sensors and Safety Systems was $326 million, exceeding the estimated $310.44 million [4] - Revenue from Test and Measurement was $203.1 million, slightly below the estimated $208.7 million [4] - Operating loss in Test and Measurement was $-1.7 million, worse than the estimated loss of $-0.38 million [4] - Unallocated Corporate Costs and Other reported an operating loss of $-36.4 million, significantly higher than the estimated loss of $-9.75 million [4] - Operating profit from Sensors and Safety Systems was $90.1 million, surpassing the estimated $83.41 million [4] Stock Performance - Ralliant's shares have returned -1.5% over the past month, while the Zacks S&P 500 composite increased by +1% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance compared to the broader market in the near term [3]