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Long Cast Advisers ‘Hanging Its Hat’ on CynergisTek (CTEK) Amid Strong Growth Catalysts

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Jose Karlo Mari Tottoc
·3 min read
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Long Cast Advisers LLC, a boutique investment management firm, published its fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 16% was recorded by the fund for the Q4 of 2020, outperforming its S&P 500 Total Return benchmark that delivered a 12% return but below its iShares MicroCap ETF and the Russell 2000 index that delivered a 32% and 31% return, respectively. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Long Cast Advisers, in their Q4 2020 Investor Letter, said that they continued to hold their position in CynergisTek, Inc. (NYSE: CTEK) during the fourth quarter of 2020. CynergisTek, Inc. is a premier cybersecurity consulting firm that currently has a $29.5 million market cap. For the past 3 months, CTEK delivered an 88.44% return and settled at $2.86 per share at the closing of February 10th.

Here is what Long Cast Advisers has to say about CynergisTek, Inc. in their Q4 2020 investor letter:

"CTEK remains the big drain on returns. What I wrote last quarter, about the frustration and the opportunity, remains relevant. My patience in the company was recently enhanced via conversations with industry participants as well as by December’s announced entry into the CMMC market. This is a new regulated market that requires DoD sub-contractors to use third party certification assessments (C3PAO) to audit their cybersecurity practices, previously done by self-audit. While I expect the market to be competitive (and eventually saturated), they are currently one of only 22 approved to perform these assessments. I’m “hanging my hat” not on CMMC since the approval process is a low bar, but on the strong brand in the important healthcare cybersecurity niche. At less than 1x sales, I think the stock is cheap. At some point I think it will return to growth and our patience will be rewarded."

welcomia/Shutterstock.com

CTEK delivered a -23.48% return in the past 12 months. Our calculations show that CynergisTek, Inc. (NYSE: CTEK) does not belong in our list of the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

https://youtu.be/OgBhPDmWMtI

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Disclosure: None. This article is originally published at Insider Monkey.