Strategic realignment: Defense gains significance, semiconductor risk is reduced
The UMBRELLA Strategy continued its targeted portfolio adjustment last week. At the center were the complete sale of Intel and the new addition of US defense group Lockheed Martin.
The decision came during a phase of heightened market volatility. Technology and AI companies in particular came under pressure, as investors increasingly questioned the high capital expenditures for artificial intelligence and their long-term profitability.
On Thursday, October 22, the Nasdaq Composite lost 2.6%. The decline continued in weakened form on Friday.
At the same time, several growth companies presented convincing business results. This discrepancy between fundamental development and short-term price movement characterized the trading week.
The UMBRELLA Strategy continues to rely on a combination of artificial intelligence, healthcare, aerospace technology, and defense.
Portfolio changes at a glance
Increased
Lockheed Martin NEU
Sold
Intel
The funds freed up from the Intel sale were reinvested in Lockheed Martin. This reduced the direct semiconductor risk while strengthening diversification within the defense sector.
Lockheed Martin: New position following strong quarterly results
One of the most important portfolio decisions was the new addition of Lockheed Martin on October 22, 2026.
The US defense group delivered a strong third quarter:
- Revenue growth of 11% to USD 20.7 billion
- Earnings per share of USD 7.97
- Record order backlog of USD 292 billion
- Another upward revision of annual guidance
The long-term order backlog in particular improves the predictability of future revenues. Rising international defense spending as well as long-term programs for air defense and military modernization support the business outlook.
Lockheed Martin complements the existing Rheinmetall position and expands the strategy to include a major US defense group.
The new position is now weighted at 2.7% and shows performance of +6.2% since inclusion.
A further increase is not currently planned.
Intel exits the portfolio completely
In parallel with the Lockheed addition, Intel was sold completely on October 22.
The reasons were the persistent technical weakness, the negative position performance, and the strategic decision to reduce direct semiconductor exposure.
The documented sales were executed in several partial orders at prices between approximately EUR 78.74 and EUR 79.23.
With this step, capital from a technically weak position was deliberately shifted into another strategic focus area.
Micron Technology, on the other hand, remains part of the strategy. The stock is being watched particularly closely given the increased volatility and the continued tense technical situation.
Healthcare remains the largest sector focus
Healthcare continues to form the foundation of the UMBRELLA Strategy.
With Eli Lilly, Revolution Medicines, AbbVie, and Johnson & Johnson, the portfolio is invested in both established pharmaceutical companies and innovative biotechnology.
Eli Lilly remains one of the largest holdings and benefits from its strong market position in modern diabetes and obesity therapies.
At Revolution Medicines, the focus is on progress surrounding RASONQUE (daraxonrasib). The positive recommendation from the European Medicines Agency’s CHMP committee, along with further clinical survival data, underscore the medical potential.
The commercial market penetration and the first solid prescription figures will now be decisive for the further fundamental development.
With a current sector share of 42.2%, healthcare remains the largest focus of the portfolio.
SpaceX: Strong quarterly results meet lock-up-related uncertainty
One of the most notable corporate developments of the past week came from SpaceX.
The company presented exceptionally strong quarterly results on October 20:
- Revenue: USD 14.6 billion, an increase of 161%
- Net profit: USD 4.4 billion
- Adjusted EBITDA: USD 8.8 billion
Growth drivers were in particular the Connectivity and Super Intelligence segments.
Despite the strong operational development, the stock came under pressure.
A possible contributing factor was expiring lock-up periods. On October 22, according to the published release rules, up to approximately 1.3 billion additional shares could become tradable.
Such releases can temporarily generate significant selling pressure, though this does not mean that all affected shares are actually sold.
SpaceX remains one of the largest portfolio positions at 14.5%. In our view, the fundamental growth outlook remains attractive, while in the short term the focus is on stabilizing the share price.
Alphabet: Significant opportunities ahead of quarterly results
Alphabet remains a core component of the UMBRELLA Strategy with a weighting of 12.1%.
The stock has recently come under pressure due to the broader weakness in AI and technology stocks.
Fundamentally, the development of Google Cloud remains particularly interesting. The cloud division benefits from growing demand for computing power, data infrastructure, and AI applications.
At the same time, attention is growing around the substantial investments major technology companies are making in data centers and AI infrastructure.
The upcoming quarterly results on October 28 should therefore provide important insights into how growth, profitability, and capital expenditures are developing.
Alphabet is thus among the most important opportunities in the portfolio, but also one of the significant short-term risk factors.
Current sector allocation
The UMBRELLA Strategy combines several structural growth themes and is currently positioned as follows:
The addition of Lockheed Martin strengthens the industrial sector, while the complete sale of Intel reduces the immediate semiconductor risk.
However, the strategy’s economic dependence on technology remains higher than the pure sector classification would suggest. Relevant exposure to AI and digital infrastructure also exists within other industries.
Current positioning
UMBRELLA Strategy · As of: October 26, 2026, 3:54 PM CET
10 positions | Equity ratio 100.0% | Cash below 0.1%
Current Positioning
UMBRELLA Strategy · October 19, 2026
Equity ratio
100.0%
Cash
below 0.1%
Position / Weighting
Performance since inclusion
Palantir Technologies
+11.4%
16.4%
Eli Lilly
+12.4%
16.4%
Revolution Medicines
+15.9%
15.9%
SpaceX
+3.6%
14.5%
Alphabet A (Google)
−8.3%
12.1%
Rheinmetall
−2.4%
9.5%
AbbVie
+1.3%
6.6%
Johnson & Johnson
+12.0%
3.5%
Lockheed Martin
+6.2%
2.7%
Micron Technology
−13.2%
2.5%
Source: wikifolio.com, UMBRELLA. The weightings and position performances are snapshots from October 26 and do not correspond to the values at market close of the reporting week.
UMBRELLA Strategy: Weekly video update
Video of the week: New impulses for the UMBRELLA Strategy
How is the UMBRELLA Strategy responding to current market developments and new opportunities?
Our latest video complements the weekly market overview and provides insights into the strategic direction of the portfolio. The focus is on developments in artificial intelligence, healthcare, and defense as well as the ongoing adjustment of positions to the market environment.
Market developments: AI investments and geopolitical risks in focus
The trading week was shaped by three key factors.
1. Reassessment of AI investments
Despite partly convincing quarterly results from major technology companies, investors increasingly questioned the high capital expenditures for data centers and AI infrastructure.
Concerns that earnings growth might not keep pace immediately with capital expenditures led to increased volatility in technology stocks.
2. Geopolitical uncertainty and oil prices
The ongoing tensions in the Middle East weighed on investors’ risk appetite. Rising oil prices simultaneously intensified concerns about inflation and a potentially longer-lasting restrictive interest rate environment.
3. Corporate earnings remain decisive
The results from SpaceX and Lockheed Martin show that individual companies can grow significantly despite difficult market conditions.
For the further price development, it will be decisive whether this fundamental strength is also reflected in more stable valuations.
Outlook: October 26 to November 1, 2026
The upcoming trading week is likely to be particularly significant for the UMBRELLA Strategy.
| Date | Company / Event | Significance |
|---|---|---|
| 10/28/2026 | Alphabet – Q3 results | Cloud growth, AI, and capital expenditures |
| 10/28/2026 | Fed interest rate decision | Interest rate outlook and market liquidity |
| 10/29/2026 | Eli Lilly – Q3 results | Revenue and earnings development |
| 10/30/2026 | AbbVie – Q3 results | Pharma growth and outlook |
| 11/02/2026 | Palantir – Q3 results | Immediately following week, AI growth in focus |
Particular attention is also being paid to the technical development of Alphabet, Micron, SpaceX, and Revolution Medicines.
Bayer also remains on the watchlist. In the event of sustained technical stabilization and freed-up liquidity, a re-entry could be considered.
Conclusion: Fundamental growth and consistent risk management
The UMBRELLA Strategy has further improved its diversification during a volatile market phase.
The complete sale of Intel and the new addition of Lockheed Martin underscore the selective investment approach: capital is deployed where fundamental prospects and strategic opportunities are convincing.
At the same time, the portfolio remains significantly exposed to the market with ten concentrated positions and an equity ratio of nearly 100%.
Our focus remains unchanged: fundamental research, attractive structural growth themes, and consistent risk management.
