## Staley Capital Advisers Trims Mercury Systems Position as Stock Surges 65% in Annual Rally

**Position Reduction Details**

Staley Capital Advisers executed a strategic portfolio adjustment in the third quarter of 2025, reducing its Mercury Systems holdings by 58,820 shares. The transaction, documented in the firm's SEC 13-F filing dated November 12, 2025, represents a $6.51 million decrease in the fund's aerospace and defense exposure. Following this sale, the fund maintains 411,310 shares valued at approximately $31.84 million, now accounting for just 1.31% of its total 13F reportable assets under management.

**Market Context and Performance**

Mercury Systems shares have demonstrated substantial strength heading into the final months of 2025. As of November 11, 2025, the stock traded at $72.74 per share, reflecting a 65.66% gain over the preceding 12-month period—a performance that significantly outpaced the S&P 500's returns by more than 56 percentage points. This impressive rally may have motivated the timing of Staley's partial exit, suggesting the fund seized an opportunity to lock in gains at elevated valuations.

**Understanding the Aerospace and Defense Leader**

Mercury Systems operates as a critical supplier within the defense industrial base, manufacturing specialized components and integrated subsystems for both aerospace and defense applications. The company's product portfolio includes power amplifiers, embedded processing modules, RF/microwave assemblies, and signal intelligence payloads—technologies that serve approximately 300 military and commercial programs. With a current market capitalization of $4.38 billion and trailing twelve-month revenue of $933 million, Mercury Systems maintains relationships with 25 major defense contractors and aviation manufacturers across North America, Europe, and Asia Pacific regions.

The company's technological foundation rests on proprietary hardware platforms designed to meet demanding aerospace and defense specifications. Components such as mercury switch technologies and advanced RF processing capabilities differentiate its offerings in mission-critical applications where reliability and performance are non-negotiable requirements.

**Fund's Broader Portfolio Positioning**

The Staley Capital Advisers reduction reflects a wider rebalancing effort rather than a loss of conviction. The fund simultaneously trimmed positions across numerous holdings, including its top four positions. Staley maintains exposure to 198 different securities, with a pronounced tilt toward technology names. Top holdings include Microsoft ($206.78 million, 8.52% of AUM), iShares Russell 2000 Growth ETF ($192.62 million, 7.94% of AUM), Alphabet/Google ($149.31 million, 6.13% of AUM), JPMorgan Chase ($135.37 million, 5.57% of AUM), and Qualcomm ($122.25 million, 5.04% of AUM).

**Implications for Investors**

The timing of this sale near multi-year highs suggests profit-taking rather than fundamental pessimism about Mercury Systems' prospects. The fact that Staley retained the majority of its 411,310-share position indicates the fund sees continued value in the defense contractor's strategic positioning. For investors tracking institutional activity, this move exemplifies a balanced approach: capturing gains in a strong performer while maintaining meaningful exposure to an industry benefiting from sustained defense spending and modernization cycles.