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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 growth, 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 buyers.
Let’s check out this under-the-radar belief to see whether or not it is perhaps arrange for additional features in 2026.
Surging house sector
Seraphim is a singular funding belief that targets early and growth-stage house 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 house, extra satellites are being deployed. That is creating numerous business alternatives. Certainly, the belief says it filters by way of round 70 alternatives monthly!
One other huge development taking part in out is rising international defence spending, significantly amongst NATO members. And house tech is changing into a precedence for a lot of governments and defence contractors.
Based on analysis supplier QuotedData, $10.4bn was raised by the sector within the third quarter of 2025 (a close to document).
The portfolio
Seraphim’s portfolio incorporates round 26 corporations, with many having dual-use applied sciences that may serve each business and defence markets.
The highest 5 holdings in June have been ICEYE (Earth statement), D-Orbit (in-orbit providers), ALL.SPACE (floor terminals), HawkEye 360 (Earth statement), and LeoLabs (information platform).
LeoLabs operates a community of ground-based radars that monitor satellites and house exercise in low Earth orbit. Given the rising variety of satellites in orbit, companies that assist forestall house particles from colliding are more and more related.
Nevertheless, the standout performer within the portfolio has been ICEYE. This Finnish agency operates a constellation of specialized satellites that present high-resolution photographs of the Earth’s floor. Not like conventional digicam satellites, the agency’s know-how can see by way of clouds, smoke, and whole 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 anticipated to run for 5 years, with an choice to be prolonged.
What about 2026?
The flip aspect to ICEYE’s ballooning valuation is that it now makes up over a 3rd of the portfolio. So if something went unsuitable on the satellite tv for pc maker, it could have an outsized detrimental influence 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 assume the inventory deserves nearer consideration. In 2026, SpaceX is anticipated to go public at some mammoth valuation, doubtlessly tempting a few of Seraphim’s personal holdings to additionally checklist (together with ICEYE). This might see it crystalise features, as occurred in 2025 with AST SpaceMobile.
As such, I stay optimistic concerning the inventory in 2026, and it’s on my radar.
