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Maran Capital: “Cadre (CDRE)’s Outlook Remains Bright”

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Maran Capital Management, an investment management firm, published its second-quarter 2022 investor letter – a copy of which can be downloaded here. In the second quarter of 2022, Maran Partners Fund returned -15.7%, net of all fees and expenses, bringing our year-to-date performance to -25.3%. Over the past five years, the partnership has compounded at a rate of approximately 14%, net. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Maran Capital Management mentioned Cadre Holdings, Inc. (NYSE:CDRE) and explained its insights for the company. Founded in 1964, Cadre Holdings, Inc. (NYSE:CDRE) is a Jacksonville, Florida-based public company with an $894.7 million market capitalization. Cadre Holdings, Inc. (NYSE:CDRE) delivered a 14.94% return and it closed at $24.16 per share on August 01, 2022.

Here is what Maran Capital Management has to say about Cadre Holdings, Inc. (NYSE:CDRE) in its Q2 2022 investor letter:

"As a reminder, Cadre primarily sells holsters, bulletproof vests, and bomb disposal suits. It has an entrenched position with many customers and is fairly recession-resistant, selling into government law enforcement budgets. The world is a dangerous place, and the pendulum is swinging back from calls to defund the police to requests to re-fund the police. The operating performance of the business has been strong. Management is top-notch, and the company has a large pipeline of accretive M&A opportunities in front of it. My base-case thesis is that it should grow earnings by double digits organically, getting EBTIDA margins to 20% over the next few years, and then add to that growth by making smart deals. Cadre announced a secondary offering of stock in June (to facilitate the exit of a private equity firm that still owned shares after Cadre’s IPO), which led to weakness in the shares (and contributed to our weak 2Q performance). In the long term, Cadre’s outlook remains bright; we added to our position during June. "

Best Gun Stocks to Invest In
Best Gun Stocks to Invest In

Photo by STNGR Industries on Unsplash

Our calculations show that Cadre Holdings, Inc. (NYSE:CDRE) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Cadre Holdings, Inc. (NYSE:CDRE) was in 4 hedge fund portfolios at the end of the second quarter of 2022. Cadre Holdings, Inc. (NYSE:CDRE) delivered a -6.03% return in the past 3 months.

In February 2022, we also shared another hedge fund’s views on Cadre Holdings, Inc. (NYSE:CDRE) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

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