Report by AIR Capital

AIR’s Top 10 Best Ideas strategies continue to demonstrate exceptional consistency and alpha generation. Since inception in 2012, their European Large Cap Top 10 has delivered +526% performance vs. +142% for the STOXX Europe 600, with AIR beating the benchmark 85% of the time over 14 years. In 2025, their Large Cap portfolio gained +31%, outperforming the index by +14.4%, driven by standout performers Heidelberg Materials (+87%) and BAE Systems (+49%), with Vonovia the only negative contributor. AIR’s Mid Cap Top 10 was equally compelling, returning +36.9%, beating the STOXX Europe Mid 200 by +20.5%, with key contributions from Saab (+130%), Hensoldt (+113%) and ACS (+75%).

€180bn bare minimum required to re-equip European armies to a standard necessary to provide credible deterrence against Russia - Agency Partners’ 31-page report explores this ‘rearmament crisis’ and which companies are best placed to benefit. Despite recent share price rises throughout the sector they still see a lot of valuation upside in European large caps. Preferred stocks include BAE Systems, Leonardo, Lockheed Martin and Rheinmetall. While European mid caps have fuller valuations, they offer much faster gearing to increased defence spending from short cycle businesses. Top picks include Saab and Babcock.