Prosper Stars & Stripes released its Q2 2025 investor letter, with a net return of +9.6% compared to the Russell 2000 Index’s +8.5% and the HFRX Equity Hedge Index’s +5.0%. The fund returned (0.8%) for the six months ended 2025 and outperformed its net exposure during the quarter.

In Q2 2025, Prosper Stars & Stripes highlighted nLIGHT, Inc. (NASDAQ: LASR), a technology company that designs and sells semiconductor and fiber lasers. LASR saw a one-month return of 36.95% and shares gained 141.21% over the last 52 weeks, closing at $28.80 per share on August 29, 2025.

Prosper Stars & Stripes identified nLIGHT, Inc. (NASDAQ: LASR) as a potential beneficiary of increased spending on missile and drone defense. LASR is a leader in high-powered laser technology for anti-missile and anti-drone systems, with a bull-case price target of $45 per share due to expected growth in defense business.

nLIGHT, Inc. (NASDAQ: LASR) was held in 30 hedge fund portfolios at the end of Q2 2025, reporting net revenue of $61.7 million, a 22% increase from the previous year. While acknowledging LASR’s potential, certain AI stocks offer greater upside potential with less downside risk.

Read more at Yahoo Finance: Will nLIGHT (LASR) Benefit from Increased Spending on Missile and Drone Defense?