The UMBRELLA Strategy was further adjusted last week. Positions in SpaceX and MercadoLibre were increased. At the same time, several key company developments shaped the week: Revolution Medicines continued the RASONQUE story, Palantir showed increased volatility, PayPal showed first signs of stabilization, and Johnson & Johnson became the RED HOT CHILI™ MUMAK of the week.
Last week was marked by further adjustments within the UMBRELLA strategy.
Healthcare continued to represent the strategy’s largest allocation. Revolution Medicines remained the largest position at around 18%, while Johnson & Johnson, Eli Lilly and Bayer continued to form the broader healthcare focus.
At the same time, SpaceX was increased to around 12%, making it one of the strategy’s larger positions. No transactions were carried out in Palantir during the week. After the strong performance in August, the stock showed increased volatility and ended the week around 6% lower.
MercadoLibre was also increased over the course of the week, thereby raising the strategy’s exposure to Latin American e-commerce and digital financial services. The increase followed the stock’s recent technical rebound, even though momentum eased toward the end of the week.
On the other hand, exposure to the European defense sector was further reduced. TKMS and Thales were partially reduced following the continued weakness in both positions. Rheinmetall was also reduced due to the further weakening technical picture, bringing the weighting down to around 3%.
Following these adjustments, the UMBRELLA strategy comprises 11 positions, with a cash allocation of around 1.7%
SpaceX increased – technical momentum improves
One of the adjustments during the week concerned SpaceX.
SpaceX was increased to around 12% over the course of the week. The decision was primarily driven by the improved technical picture: After recent weakness, the stock regained positive momentum and moved towards an important resistance area.
The longer-term outlook around Starlink, space infrastructure and advanced technologies continues to support the position.
Revolution Medicines: RASONQUE story continues to evolve
Revolution Medicines remained the largest position within the UMBRELLA strategy at around 18%.
Following the recent FDA approval of RASONQUE for certain patients with metastatic pancreatic cancer, the fundamental story continued to develop last week.
New clinical data on RASONQUE in previously treated metastatic RAS-mutated non-small cell lung cancer were published in the New England Journal of Medicine. Although RASONQUE is currently not approved for this indication, the data provide further clinical support for the broader potential of the company’s RAS(ON) oncology platform.
Analyst sentiment also remained positive following the FDA approval, with several analysts raising their price targets.
From a technical perspective, however, momentum cooled somewhat after the recent strong rally.
For the UMBRELLA strategy, the focus is now increasingly on the commercial launch of RASONQUE. The next quarterly report will also be particularly important, as RASONQUE is now commercially available in the US and should deliver initial revenue contributions.
Palantir: Strong growth meets higher volatility
Palantir showed significantly higher volatility during the week.
After the strong rally in August, the stock initially came under pressure as software stocks fell and bond yields rose.
For the UMBRELLA strategy, the technical picture therefore continues to play an important role alongside the company’s long-term growth potential.
PayPal: First signs of stabilization after the sell-off
PayPal, which was added to the UMBRELLA Strategy at the end of August and subsequently reduced after a significant price decline, remained unchanged within the strategy last week. The position currently accounts for around 2%.
After the sell-off, which was triggered by reports that Stripe and Advent International had ended talks about a potential acquisition, the stock showed first signs of stabilization over the course of the week.
The share price recovered and once again approached an important technical resistance area.
RBC raised its price target from USD 65 to USD 70 and reaffirmed its Outperform rating.
Fundamentally, the focus is now back on PayPal’s operational performance. Revenue growth, margins, cash flow, and the implementation of the company’s restructuring and cost-cutting measures will be particularly important.
From a technical perspective, the recent rebound represents a first positive development.
Exposure to the European defense sector further reduced
The largest reductions during the week concerned Rheinmetall, Thales and TKMS.
The fundamental environment for the European defense industry continues to be supported by higher defense budgets, long-term procurement programs, and high order backlogs.
However, the recent technical development of several defense stocks was weaker.
Against this background, TKMS and Thales were partially reduced, while Rheinmetall was further reduced to around 3%.
These adjustments do not change our fundamental assessment of the structural importance of the European defense industry. However, exposure is currently being managed more selectively, as the UMBRELLA Strategy reacts to the interplay of fundamental data, market sentiment, and technical signals.
Performance of the UMBRELLA positions
| Position | Performance 1 week | Performance 1 month |
|---|---|---|
| Revolution Medicines | +1.4% | +5.4% |
| Johnson & Johnson | +1.9% | +6.0% |
| Eli Lilly | −2.5% | −4.5% |
| Bayer | +0.4% | −0.6% |
| SpaceX | +5.6% | +29.2% |
| MercadoLibre | −0.5% | +6.6% |
| Palantir Technologies | −6.7% | +9.9% |
| Rheinmetall | −11.4% | −11.5% |
| Thales | −4.8% | −12.3% |
| TKMS | −7.9% | −7.8% |
| PayPal | +0.8% | −9.9% |
RED HOT CHILI™ MUMAK of the week: Johnson & Johnson 🔥
Johnson & Johnson was named RED HOT CHILI™ MUMAK of the week.
The company currently combines several characteristics that are particularly relevant within the MUMAK® UMBRELLA strategy: operational stability, a defensive business model, positive analyst sentiment, and an improving technical picture.
Johnson & Johnson continues to benefit from its diversified positioning in Innovative Medicine and MedTech. Following the latest quarterly results, the company also raised its full-year guidance.
Analyst sentiment provided an additional positive signal: UBS raised its price target from USD 280 to USD 320 and at the same time reaffirmed its Buy recommendation.
The technical picture also continued to improve.
MUMAK SpotLight: Eli Lilly and Palantir in focus
This week’s MUMAK SpotLight focused particularly on Eli Lilly and Palantir – two companies that continue to show strong operational development, but also illustrate how important valuation and market expectations have become.
At Eli Lilly, new clinical developments expanded the potential of tirzepatide beyond diabetes and obesity.
New 52-week data from the TOGETHER-PsO and TOGETHER-PsA studies showed sustained benefits of the combination of Taltz and Zepbound in patients with psoriasis or psoriatic arthritis and obesity.
At Palantir, strong operational news, by contrast, met significantly higher volatility in the market.
The contrast between the two companies highlights an important theme in the current market environment: Strong fundamental performance does not necessarily translate directly into positive price momentum when expectations and valuations are already high.
Outlook: Rates and market sentiment remain important
In addition to developments at individual companies, the macroeconomic environment continues to influence the UMBRELLA strategy.
In Europe, attention is on the ECB’s monetary policy decision on Thursday, along with Christine Lagarde’s press conference and the ECB’s updated economic projections. In the US, producer prices on Thursday and consumer prices on Friday are in focus. Both releases could influence expectations ahead of the next monetary policy meeting of the US Federal Reserve.
These developments are particularly relevant for highly valued growth and technology stocks such as Palantir and SpaceX, as market expectations are high and changes in discount rates can have a significant impact on valuations.
More defensive healthcare companies such as Johnson & Johnson can offer a different risk profile in this environment.
The current positioning therefore combines healthcare with selected structural growth themes in artificial intelligence, advanced technologies, and digital commerce.
Upcoming events
| Date | Market | Event |
|---|---|---|
| September 10, 2026 | ECB | Rate decision and press conference |
| September 10, 2026 | USA | Producer Price Index (PPI) for August |
| September 11, 2026 | USA | Consumer Price Index (CPI) for August |
