Defense Prime Contractors

NATO spending boom: LMT, NOC, RTX, BAE, GD — cost-plus contracts = guaranteed margins

Total Return

+19.7%

Sharpe Ratio

0.23

Max Drawdown

-16.6%

Win Rate

48.3%

Alpha

-60.2%

Comp. Score *

0.09

Risk Parameters

Max Allocation4.8%

Stop Loss16.6%

Take Profit10.0%

Max DD Tolerance16.6%

Rebalancemonthly

Execution Guidance

Order TypeLimit

Entry RuleBuy on policy announcement day or day after. Backlogs are locked — dips are gifts.

TimingSAFE TO BUY. *

ScalingEnter 60% immediately on catalyst, add 40% if pullback within 2 weeks.

Positions — Vol-Adjusted Sizing

Symbol	Action	Vol	Stop Loss	Take Profit	Size	Links
LMT	BUY	26%	18.4% below entry	11.1% above entry	4.4%	TV YH
NOC	BUY	26%	18.3% below entry	11.0% above entry	4.4%	TV YH
BAESY	BUY	34%	23.7% below entry	14.3% above entry	3.4%	TV YH
LHX	BUY	25%	17.2% below entry	10.4% above entry	4.7%	TV YH
RTX	BUY	26%	17.8% below entry	10.7% above entry	4.5%	TV YH
GD	BUY	22%	15.3% below entry	9.2% above entry	5.3%	TV YH
LDOS	BUY	31%	21.8% below entry	13.2% above entry	3.7%	TV YH
HII	BUY	40%	27.9% below entry	16.8% above entry	2.9%	TV YH