Neuberger Berman Shifts Space Strategy Toward European Defense Assets

Neuberger Berman's Next Generation Space Economy Fund has begun aggressively accumulating positions in European aerospace and defense firms. The move comes as the fund seeks value outside the United States, where valuations have been driven higher by anticipation surrounding SpaceX. Fund manager Evelyn Chow has identified a significant valuation gap between the US and European markets. While the US sector remains buoyed by high-profile private ventures, European counterparts have faced recent pressure, creating a strategic entry point for long-term institutional investors. The fund has recently added shares of Leonardo SpA, Avio SpA, and Indra Sistemas SA to its portfolio. These companies are key players in the production of rocket engines and defense electronics, providing the essential infrastructure for the modern space economy. Chow noted that the stock selloff triggered by the outbreak of the Iran war provided a timely buying window. This tactical entry coincides with a broader global trend of increasing defense expenditures as nations prioritize security and aerospace capabilities. This rotation suggests a growing institutional appetite for European industrial space assets as a hedge against US overvaluation and a play on the rising necessity of global defense infrastructure.