Strategic realignment: Healthcare sector gains significance, technology risks are reduced

The past trading week was characterized by significant fluctuations on the US stock exchanges and an intensive quarterly earnings season. Technology and AI companies in particular came under pressure, while selected healthcare companies attracted attention with convincing business figures.
On Friday, October 30, the Nasdaq Composite lost 2.86%, while the S&P 500 gave up 1.82%. Investors increasingly questioned the high capital expenditures of technology groups and their future profitability.
The US Federal Reserve left the key interest rate unchanged at 3.75–4.00% on October 28. At the same time, geopolitical developments and the upcoming US midterm elections are causing additional uncertainty.
The UMBRELLA Strategy reacted with targeted portfolio adjustments. The focus was on the readmission and increase of Bayer, as well as significant reductions in Alphabet and SpaceX.
Our focus remains the combination of healthcare, artificial intelligence, aerospace technology, and defense.

Portfolio changes at a glance

Increased

BayerNEU

Micron Technology

Reduced

Alphabet

SpaceX

Sold

Lockheed Martin

The adjustments reflect our active investment approach. While the legal situation for Bayer improved, we reacted to increased technical risks at Alphabet and SpaceX.

Bayer: Legal breakthrough supports readmission

One of the most important decisions was the readmission of Bayer into the UMBRELLA Strategy.
On October 29, a jury in Missouri decided unanimously in favor of the Bayer subsidiary Monsanto. This was the first Roundup trial following the landmark decision by the US Supreme Court in June 2026.
The plaintiffs were unable to prevail with their allegations regarding product defects, deception, and negligence.
This success significantly improves the legal starting position in the glyphosate litigation complex. However, further proceedings and financial risks persist. The final approval of the broader settlement also remains to be seen.
Together with the positive technical development, this supported our decision to readmit Bayer and subsequently increase the position significantly.
The stock is now weighted at 7.2% in the portfolio.

Alphabet and SpaceX: Consistent risk reduction

At Alphabet, the quarterly figures from October 28 were the focus.
The group reported revenue growth of 25% to USD 127.6 billion. Google Cloud developed particularly impressively with growth of 103% to USD 30.7 billion.
Despite this strong operational development, the stock market reacted negatively. In particular, the significant investments in AI infrastructure and the question of their future profitability weighed on the valuation.
Due to the negative price reaction and the deteriorated technical starting position, we significantly reduced Alphabet to 4.6%.
The exposure to SpaceX was also scaled back.
Following recent price fluctuations and uncertainties surrounding expiring lock-up periods, we decided on a gradual reduction.
SpaceX remains a significant holding at 10.7%. The long-term growth perspective remains interesting, but in the short term, technical stabilization is the priority.
Lockheed Martin was completely removed from the portfolio, taking existing ESG requirements into account.

Eli Lilly: Outstanding quarterly figures confirm investment thesis

One of the most convincing corporate developments was delivered by Eli Lilly.
The US pharmaceutical group presented exceptionally strong quarterly results on October 29:
  • Revenue growth of 39% to USD 24.4 billion
  • Adjusted earnings per share of USD 7.48
  • Increase in the annual revenue guidance to USD 91–92 billion

The main growth drivers remain the drugs Mounjaro and Zepbound for the treatment of diabetes and obesity.

Increasing global demand, additional production capacities, and the expansion of the product portfolio support the long-term business prospects.
Eli Lilly is currently our largest portfolio position at 18.3% and has shown a positive position performance of around 23% since its inclusion.

AbbVie and Revolution Medicines strengthen the healthcare segment

AbbVie also impressed with its quarterly figures published on October 30.
Revenue rose by 10.3% to USD 17.4 billion. Adjusted earnings per share reached USD 3.82. The drugs Skyrizi and Rinvoq in particular supported the development of the immunology business.
The company also raised its annual profit guidance.
Revolution Medicines also remains one of our most important holdings. The company develops innovative cancer therapies, with the commercial development of RASONQUE and further clinical progress at the center.
With a current weighting of 16.6%, Revolution Medicines is among our largest positions.
Together with Johnson & Johnson and Bayer, healthcare has now become by far the most important sector focus of our strategy.

Current Sector Distribution

The recent adjustments have significantly changed the sector weighting.
Verteilung der Aktien
Source: wikifolio, UMBRELLA Strategy, 11/02/2026. The percentages refer to the invested stocks, not the entire portfolio including liquidity.
Healthcare now represents more than half of the equity portfolio at 53.7%.
Alongside established pharmaceutical groups, we continue to rely on innovative biotechnology with Revolution Medicines.
At the same time, the economic dependence on artificial intelligence and digital infrastructure remains higher than the pure sector classification would suggest.

Current Positioning

UMBRELLA Strategy · As of: November 2, 2026, approx. 3:55 PM CET
10 Positions | Equity Ratio 97.2% | Liquidity 2.8%

Current Positioning

UMBRELLA Strategy · October 19, 2026

10 Positions
Equity Ratio 97.2%
Liquidity 2.8%
Position / Weighting Performance since inclusion
Eli Lilly
18.3%
+23.0%
Revolution Medicines
16.6%
+19.0%
Palantir Technologies
15.5%
+3.3%
SpaceX
10.7%
−2.0%
Rheinmetall
9.4%
−4.8%
Bayer
7.2%
+1.9%
Abbvie
6.7%
+1.6%
Micron Technology
4.7%
−13.3%
Alphabet A (Google)
4.6%
−18.5%
Johnson & Johnson
3.5%
+12.5%

Source: wikifolio.com, UMBRELLA Strategy. The values are a snapshot from 11/02/2026 and do not necessarily correspond to the closing prices of the reporting week. The position performance does not correspond to the overall performance of the strategy.

UMBRELLA Strategy: Weekly Video Update

Video of the week: Current market developments and strategic adjustments

How does the UMBRELLA Strategy react to new market impulses and changed framework conditions?

Our current video complements the weekly market overview and highlights the latest developments within the strategy. The focus is on artificial intelligence, healthcare, and defense, as well as the ongoing adjustment of positions to current market trends.

Market Developments: AI Investments and US Midterms in Focus

The trading week was shaped by three main influencing factors.
1. Revaluation of AI investments
Alphabet’s quarterly figures illustrate the high growth expectations for large technology companies.
Despite impressive revenue increases, investors are reacting increasingly critically to the enormous capital expenditures for data centers and AI infrastructure.
This development also affects companies like Palantir and Micron, whose long-term prospects are closely linked to the further spread of artificial intelligence.
2. Monetary policy and geopolitical uncertainty
The Fed left the key interest rate unchanged at 3.75–4.00% and continued to point to increased inflation risks.
At the same time, geopolitical tensions in the Middle East remain a significant uncertainty factor for energy prices and financial markets.
The interplay of interest rates, inflation, and geopolitical risks is likely to continue influencing short-term market volatility.
3. US Midterms on November 3, 2026
The upcoming midterm elections could lead to a shift in political majorities in the US Congress.
According to a Reuters analysis from November 2, the sectors of artificial intelligence, data centers, healthcare, and defense in particular could react differently to possible election outcomes.
Stronger Democratic control could bring additional regulatory scrutiny in the AI sector as well as more intensive oversight of defense spending.
In healthcare, defensive qualities could remain in demand, while at the same time political pressure on drug prices could increase.
For our UMBRELLA Strategy, these developments are particularly relevant due to its sectoral orientation.
However, a concrete election outcome cannot be reliably derived from this.

Outlook: November 2 to November 8, 2026

The coming trading week is likely to be particularly significant for the UMBRELLA Strategy.

DateCompany / Event Significance
11/02/2026Palantir – Q3 figuresAI business, revenue growth, guidance
11/03/2026Bayer – Q3 figuresPharma, Crop Science, annual outlook
11/03/2026US Midterm ElectionsPolitical majorities, sectoral market reactions
11/04/2026Revolution Medicines – Q3 figuresRASONQUE, pipeline, commercialization
11/05/2026Rheinmetall – Q3 figuresOrder intake, margins, annual guidance
The results from Palantir, Bayer, Revolution Medicines, and Rheinmetall will be particularly important. Together, these four companies represent around 49% of our current portfolio weighting.
In view of the upcoming publications and political uncertainty, we expect increased price fluctuations in the short term.
No further portfolio adjustments are planned at this time.

Conclusion: Fundamental growth and consistent risk management

The UMBRELLA Strategy has specifically changed its positioning in a volatile market phase.
The readmission of Bayer, the reductions in Alphabet and SpaceX, and the complete sale of Lockheed Martin underscore our active investment approach.
At the same time, the outstanding business figures from Eli Lilly and AbbVie confirm the fundamental strength of important holdings in our healthcare segment.
With ten concentrated equity positions and an investment ratio of 97.2%, we remain significantly market-exposed.
Our focus remains unchanged: Fundamental research, attractive structural growth themes, and our risk management.