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Seraphim Area Funding Belief (LSE:SSIT) was a penny inventory simply over two years in the past, buying and selling at 29p. Nonetheless, benefiting from the current house know-how growth, the belief has moved out of penny inventory territory and now has a share value of 114p and a market capitalization of £270m.
With a 109% soar, Seraphim’s year-to-date efficiency outperforms each rolls royce (102%) and Nvidia (40%). Due to this fact, it has confirmed to be a hidden gem for astute traders.
Let’s check out this under-the-radar belief and see if it may very well be arrange for additional features in 2026.
Quickly rising house subject
Seraphim is a novel funding belief centered on early- and growth-stage house know-how firms. These embody “The potential to dominate the world and assist deal with humanity’s most urgent challenges resembling local weather change, communications, mobility, and international safety.”.
Extra satellites are being deployed as rocket firms like SpaceX dramatically decrease the price of accessing house. This has created quite a lot of enterprise alternatives. Actually, the belief says it filters round 70 alternatives each month.
One other main pattern is the rise in international protection spending, particularly amongst NATO member states. And house know-how has turn out to be a precedence for a lot of governments and protection contractors.
In keeping with analysis supplier QuotedData, the sector raised $10.4 billion within the third quarter of 2025 (almost a file).
portfolio
Seraphim’s portfolio consists of roughly 26 firms, a lot of which have dual-use applied sciences that may serve each industrial and protection markets.
The highest 5 holdings in June had been ICEYE (earth commentary), D-Orbit (in-orbit service), ALL.SPACE (floor terminal), HawkEye 360 (earth commentary), and LeoLabs (information platform).
LeoLabs operates a community of ground-based radars that monitor satellites in low Earth orbit and house exercise. Given the rising variety of satellites in orbit, firms that assist stop house particles collisions have gotten more and more essential.
Nonetheless, the standout performer within the portfolio is ICEYE. The Finnish firm operates a fleet of specialised satellites that present high-resolution pictures of the Earth’s floor. Not like conventional digital camera satellites, the corporate’s know-how can see by means of clouds, smoke, and full darkness, permitting it to trace exercise in actual time.
Simply earlier than Christmas, ICEYE and protection giants line metallic Signed a 1.7 billion euro contract with the German army to supply reconnaissance information from house. The contract is predicted to final 5 years, with an choice to increase.
This could considerably enhance ICEYE’s valuation, which was already at €2.4 billion in its earlier funding spherical in September. The information despatched Seraphim shares above 100p for the primary time since April 2022.
What’s going to occur in 2026?
The flip aspect of ICEYE’s inflated valuation is that it now accounts for greater than a 3rd of the portfolio. Due to this fact, if one thing goes mistaken with the satellite tv for pc producer, it might have a major unfavorable affect on Seraphim’s web asset worth (NAV).
Talking of which, the earlier excessive NAV low cost price has shrunk to 4.6%. So it appears prefer it’s a a lot worse cut price now than it was in mid-2023, when reductions had been near 70%.
Nonetheless, I feel this inventory deserves extra consideration. SpaceX is predicted to go public in 2026 at an enormous valuation, probably engaging a few of Seraphim’s non-public fairness (together with ICEYE) to go public as nicely. This might end in earnings crystallizing, as occurred in 2025. AST Area Cellular.
So I stay optimistic and centered on the inventory value in 2026.