As featured on Livewire, Minotaur Capital has strategically positioned itself to capitalise on the shifting European defence landscape following recent geopolitical developments. Escalating tensions between the US and Ukraine, combined with Europe's push for strategic autonomy, have created compelling investment opportunities in European defence stocks.
We allocated 20% of the Minotaur Global Opportunities Fund towards European and UK defence names two weeks ago, anticipating this structural shift. As Thomas Rice noted in the analysis:
"Defence budgets in the region will likely shift from 2% of GDP to 3-4%. Currently, 60-70% of suppliers to the region are based in the US. However, as European nations prioritise strategic autonomy and domestic security capabilities, we expect a shift in spending to favour local European and UK-based suppliers," he said.
This dual growth catalyst presents significant opportunities for investors seeking global equities exposure. Our strategy focuses on companies like Rheinmetall, BAE Systems, and Leonardo, which are positioned to benefit from both increased defence spending and market share gains as European nations reduce their reliance on US suppliers. This investment approach reflects our focus on identifying structural growth themes in an evolving geopolitical landscape.
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