🚦 Weekly Snapshot — Insider Portfolio in the Green
1️⃣ Insider Portfolio posts a stellar +202% YoY return despite choppy markets.
2️⃣ Thales SA shines on strong defence momentum and minimal tariff exposure.
3️⃣ TMC slides—but remains a strategic bet in the deglobalisation theme.
1️⃣ Portfolio Performance: Holding Strong Amidst Volatility
Despite choppy global markets, our Insider Portfolio continued to demonstrate its resilience. As of 1 May 2025, the portfolio has delivered a robust +202% return over the past 12 months, reinforcing the defensive strength and structural quality of our holdings.
2️⃣ This Week’s Standout: Thales SA (+8.17%)
In a week marked by heightened volatility, French defence and aerospace leader Thales SA (Euronext Paris: HO) emerged as our top gainer, rising +8.17% 5-days alone—and now up +84% year-to-date. We’ve covered the European defence theme in previous editions, identifying Thales as a long-term high-conviction pick. That thesis is playing out.
📊 Q1 2025 Financial Snapshot
On 24 April, Thales released its Q1 results:
Sales: €5.0 billion, up +12.2% YoY (+9.9% organically)
Order intake: €3.8 billion, down -25% (as expected, due to base effects)
2025 outlook: Fully reaffirmed, including +5–6% organic sales growth and 12.2–12.4% adjusted EBIT margin
Geographically, both mature markets (+9.7%) and emerging markets (+10.5%) delivered solid growth, with the UK (+14.9%) standing out.
Segment-wise:
Defence: €2.69 billion, +16.5% YoY, driven by ramp-up in radar and land systems
Aerospace: €1.34 billion, +13.5%, supported by strong avionics demand
Cyber & Digital: €903 million, slightly down (-1.5%) due to slower premium services, though integration of Imperva is ongoing
Payments & Biometrics: Now stabilising post-COVID spike
🔍 Clouded by Tariffs? Minimal Impact for Now
Amid rising tariff tensions, Thales is proactively assessing potential direct and indirect impacts. While defence exports often enjoy exemptions and built-in contractual protections (e.g., Incoterms, duty drawback schemes), the company is reviewing alternate sourcing and supply chain adjustments. Management expects any net direct tariff effects to be "contained" based on current assessments.
Thales SA has proven its value in our portfolio once again—offering both defensive strength and long-term growth potential. As tariff policies evolve and geopolitical tensions persist, we believe companies with clear mission, strategic relevance, and operational discipline will continue to outperform.
3️⃣ This Week’s Laggard: TMC The Metals Company (-16.14%)
On the flip side, TMC The Metals—a deep-sea exploration company focused on critical mineral reserves—was our worst performer, falling -16.14% this week. The company’s latest financial snapshot paints a nuanced picture: while operating losses remain substantial, the cash position showed a modest improvement of $3.53 million—suggesting cautious cash management amid ongoing challenges. Capital expenditure, currently around $50,000, reflects strategic positioning rather than scale expansion, signalling a business still in early-stage development and awaiting a clear inflection point.
While the drop is notable, we maintain our conviction in the deglobalisation theme. TMC operates in a niche of growing strategic relevance to U.S. policy—particularly as the scramble for rare earths intensifies. If you’re curious why we hold this stock, stay tuned: we’ll break down the investment case in a future issue.
📌 Each Monday, we spotlight the best (and worst) performers in our portfolio—unpacking their moves and explaining our stock-picking rationale. But the full allocation details, rebalancing strategy, and our next trade idea? That’s exclusive to our Premium Friday Edition.
💡 For just $6/month (or £5/month), unlock full access to our macro and equity strategy—alongside 36,000+ global investors who believe: “Your money deserves better.”
👉 Stay ahead. Stay informed. Stay strategic.
This information is for guidance purposes and may become out of date at any given time. It is not investment advice. Investments can rise and fall in value. Genuine Impact won’t make any assessment of whether the investments you choose are appropriate or suitable for you. If you are unsure of the suitability of any investment, investment service or strategy, you should seek independent financial advice. Past performance does not indicate future results. Your capital is at risk.
Love what you’re reading? Share this newsletter with your network and help them stay ahead of market trends. 💼📈 Let’s build a community of savvy investors who are always in the know!
Instagram | X/Twitter | LinkedIn
Created by Genuine Impact