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Prosper Stars & Stripes, a protracted/brief fairness fund, lately launched its third-quarter 2025 investor letter. A replica of the letter might be downloaded right here. Within the third quarter of 2025, Prosper Stars & Stripes achieved a web return of +9.8%. Compared, its lengthy/brief fairness hedge fund peer group, as indicated by the HFRX Fairness Hedge (Complete) Index (the “HFRX”), reported a complete return of +3.8%. Moreover, the long-only small-cap Russell 2000 Index (the “Russell”) had a complete return of +12.4%. 12 months up to now, the fund returned +8.6% in comparison with a complete return of +13.6% for the HFRI and +10.4% for the Russell. The Composite’s lengthy guide delivered robust efficiency in each the third quarter and year-to-date 2025. The brief guide detracted from efficiency each within the third quarter and year-to-date in 2025. As well as, please examine the fund’s prime 5 holdings to know its greatest picks in 2025.
In its third-quarter 2025 investor letter, Prosper Stars & Stripes highlighted shares akin to Park Aerospace Corp. (NYSE:PKE). Headquartered in Westbury, New York, Park Aerospace Corp. (NYSE:PKE) is an aerospace firm. The one-month return of Park Aerospace Corp. (NYSE:PKE) was 2.78%, and its shares gained 28.52% of their worth over the past 52 weeks. On November 26, 2025, Park Aerospace Corp. (NYSE:PKE) inventory closed at $19.60 per share, with a market capitalization of $390.154 million.
Prosper Stars & Stripes acknowledged the next concerning Park Aerospace Corp. (NYSE:PKE) in its third quarter 2025 investor letter:
“Park Aerospace Corp. (NYSE:PKE) was the second-best contributor within the lengthy guide in the course of the third quarter of 2025. Park develops and manufactures hot-melt superior composite supplies used to supply composite buildings for the aerospace and protection industries. The corporate’s operations are anchored by a long-term, sole sourced settlement to supply composite supplies for engine nacelles and thrust reverses on the LEAP-1A engine. An engine nacelle homes the engine and offers structural, thermal, and acoustic qualities. The LEAP-1A powers roughly 60-70% of all A320 household of plane. Airbus needs to ramp up by constructing 78 planes per 30 days in comparison with the present 50 per 30 days common in 2024. Park additionally has thrilling alternatives with Kratos for its Valkyrie loyal wingman program. Park additionally has a rising place within the aerospace and protection industries that traditionally has produced EBITDA margins north of 20%. Lately, the corporate introduced a fabric funding for brand spanking new capability for expanded manufacturing of ablative compositive parts, i.e. stable rocket motor nozzles and warmth shields for the Patriot (“PAC-3”) missile programs. The US is all the way down to 25% of their desired ranges of supply5 including to stress to quickly improve manufacturing. Park administration confirmed this level on their final earnings name saying the US Military is seeking to improve procurement by 4x. The corporate’s navy gross sales represented 42% of FY25 gross sales and we anticipate this quantity to extend over the following few years. We valued PKE at 25x FY26 EBITDA which can drive the inventory into the mid to excessive $20s over the following 12 months.”
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