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Seraphim House Funding Belief (LSE:SSIT) was a penny share that was buying and selling at 29p simply over two years in the past. However after benefitting from the latest space-tech increase, the belief has escaped penny-stock territory, and now sports activities a 114p share worth and £270m market cap.
A 109% surge places Seraphim’s year-to-date efficiency forward of each Rolls-Royce (102%) and Nvidia (40%). So it has confirmed to be a hidden gem for eagle-eyed traders.
Let’s check out this under-the-radar belief to see whether or not it could be arrange for additional positive factors in 2026.
Surging area sector
Seraphim is a singular funding belief that targets early and growth-stage area know-how corporations. These have “the potential to dominate globally and assist sort out humanity’s most urgent challenges like local weather change, communications, mobility and international safety“.
As rocket corporations like SpaceX dramatically decrease the price of accessing area, extra satellites are being deployed. That is creating numerous industrial alternatives. Certainly, the belief says it filters by round 70 alternatives per 30 days!
One other large development enjoying out is rising international defence spending, significantly amongst NATO members. And area tech is changing into a precedence for a lot of governments and defence contractors.
In line with analysis supplier QuotedData, $10.4bn was raised by the sector within the third quarter of 2025 (a close to file).
The portfolio
Seraphim’s portfolio accommodates round 26 corporations, with many having dual-use applied sciences that may serve each industrial and defence markets.
The highest 5 holdings in June have been ICEYE (Earth commentary), D-Orbit (in-orbit companies), ALL.SPACE (floor terminals), HawkEye 360 (Earth commentary), and LeoLabs (information platform).
LeoLabs operates a community of ground-based radars that monitor satellites and area exercise in low Earth orbit. Given the rising variety of satellites in orbit, corporations that assist stop area particles from colliding are more and more related.
Nonetheless, the standout performer within the portfolio has been ICEYE. This Finnish agency operates a constellation of specialized satellites that present high-resolution photos of the Earth’s floor. Not like conventional digital camera satellites, the agency’s know-how can see by clouds, smoke, and complete darkness to trace actions in actual time.
Simply earlier than Christmas, ICEYE and defence big Rheinmetall signed a €1.7bn contract with the German military to offer space-based reconnaissance information. The deal is predicted to run for 5 years, with an choice to be prolonged.
It ought to lead to a major uplift in ICEYE’s valuation, which was already €2.4bn at its final financing spherical in September. The information despatched Seraphim inventory surging above 100p for the primary time since April 2022.
What about 2026?
The flip facet to ICEYE’s ballooning valuation is that it now makes up over a 3rd of the portfolio. So if something went flawed on the satellite tv for pc maker, it could have an outsized damaging affect on Seraphim’s internet asset worth (NAV).
Talking of which, the earlier chunky NAV low cost has narrowed to 4.6%. So it now appears far much less of a discount than in mid-2023 when the low cost was close to 70%.
Nonetheless, I nonetheless suppose the inventory deserves nearer consideration. In 2026, SpaceX is predicted to go public at some mammoth valuation, doubtlessly tempting a few of Seraphim’s non-public holdings to additionally listing (together with ICEYE). This might see it crystalise positive factors, as occurred in 2025 with AST SpaceMobile.
As such, I stay optimistic concerning the inventory in 2026, and it’s on my radar.
