The risk of #3 is that they don't create fusion but they do develop a machine that can emit streams of hot plasma which is then turned into the Navy's weapon of choice for close weapons support on carrier battle groups.
Why is that a risk? I'd like to live in a country with that technology, because otherwise other countries will have it and we won't.
Depending on the military application, it might still have a halo effect.
Great skill in manipulating magnetic fields would probably be useful for: MRI. Detecting landmines and UXO in a field from a UAV or otherwise safe distance. Detecting submarines, including those by terrorists or rogue states transporting NBC weapons.
While those are military applications, they're fairly unalloyedly positive.
Even the hypothetical plasma rifle isn't necessarily a bad thing; if a plasma rifle allows rich countries like US, Japan, etc. to overmatch poor countries and thus prevent war, that's kind of a plus.
But it would create a financial upside. They are a fund after all, and you'll find plenty of institutions investing in LMT, NOC, and friends.
You might lose some of the halo effect for one audience, but gain it from another. Not everyone things defense (or if you prefer weapons, or arms dealing) is a bad sector to be in.
Why is that a risk? I'd like to live in a country with that technology, because otherwise other countries will have it and we won't.