The idea behind this report is to share the opportunities we are researching and where our conviction stands at the moment.
Our investment process typically starts by identifying an attractive theme or sector, then picking a great company that stands on its own merits. Right now, we see healthcare, banking, and defense as sectors with plenty of opportunities.
We’ll also share below takeaways from recent meetings with the management teams of these companies to answer the following questions:
Alcoa Corp: Where are aluminum prices heading?
Nike: Can ONON keep winning market share? (Yes)
MDA Space: Our conviction for 2026-2027
The core of our research process is to find attractive companies that are part of promising investment themes. This gives us two sources of potential upside: the company’s own growth and the broader industry theme.
In the coming weeks, we will publish a piece on our investment philosophy, giving you a closer look at how we find ideas. Importantly, it should provide you with a better understanding of how Aurelion Research does things and manages the Aurelion Index.
Table of Contents
Why We Increased Our Healthcare Exposure
Key Takeaways from Management Meetings
Theme 1: Insurance & Banking
3.1 Investment Idea #1
3.2 Investment Idea #2
Theme 2: Defense is Getting Cheap
4.1 Investment Idea #3
4.2 Investment Idea #4
MDA Space: Growing Conviction
1. Why We Increased Our Healthcare Exposure
We added more healthcare companies to the Aurelion Index this summer to help balance our exposure to AI and mining, which proved helpful last month:
Yesterday, Democrats took control of Congress. This has a positive impact on healthcare as explained previously:
“[Why Now?] Midterm elections could remove an overhang.
The US midterm elections are scheduled for November 3.
Historically, the stock market has performed well in the year following midterm elections, as uncertainty fades and investors gain more clarity.
For medtech, uncertainty around tariffs and US healthcare policy has weighed on sentiment this year. We are not taking a view on the election outcome, but greater policy clarity could help the sector.
This potential upside is not reflected in the valuation of the company…”