Alger Fund Sees Longer-Term Opportunity in Karman Holdings Despite Near-Term Concerns
The Alger Mid Cap Focus Fund's Q2 2026 investor letter highlights Karman Holdings (KRMN) as a top detractor due to near-term concerns including an earnings shortfall, auditor change, secondary offering, and a Blue Origin rocket incident affecting space sentiment. Despite these issues, the fund sees long-term opportunity in Karman's differentiated engineering capabilities, defense contract visibility, and exposure to growing government and commercial space budgets. Karman designs mission-critical systems for launch vehicles, missiles, spacecraft, hypersonics, and unmanned aircraft. The stock closed at $46.17 on July 17, 2026, with a market cap of $6.12 billion, down 17.88% over 52 weeks. Hedge fund interest increased to 43 portfolios in Q1 2026 from 36 in the prior quarter.
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