Sycamore Capital Management's Mid Cap Value Equity Strategy retained L3Harris Technologies as a top detractor in its Q2 2026 investor letter, citing a broad defense sector derating and concerns over the proposed $1.5 trillion defense budget. The strategy returned 9.6% net, underperforming the Russell Midcap Value Index's 13.83% return due to stock selection and sector allocation. L3Harris shares traded lower amid worries that the $350 billion reconciliation package inside the defense budget may face hurdles heading into the midterms, and after the company announced the spinoff of its missile solutions division, Axyv. Despite the pullback, Sycamore said L3Harris continues to see strong momentum across each of its segments and remains well-positioned for the Department of War's long-term priorities, keeping its thesis intact. L3Harris closed at $290.74 per share on August 12, 2026, with a market capitalization of $54.14 billion.
