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Here’s Why Long Cast Advisers is Bullish on Pro-Dex Inc. (PDEX)

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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 Q4 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 add to their position in Pro-Dex, Inc. (NASDAQ: PDEX) during the fourth quarter of 2020. Pro-Dex, Inc. is a surgical and medical instrument manufacturing company that currently has a $103.9 million market cap. For the past 3 months, PDEX delivered a -24.72% return and settled at $26.93 per share at the closing of February 10th.

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

"Already a few weeks into this quarter, I’ve continued to add to PDEX, a growing medical device company. PDEX has launched a string of niche products tied to its torque controlled medical driver, which is used to accurately seat screws into bone without stripping. (With a little digging one can observe their products sold under brand names like Stryker and Johnson & Johnson.

A little over a year ago, (pre-COVID), I visited the company for its annual meeting and it was “busting at the seams”. It recently acquired a building in order to double its production footprint, funded partially through an award to build a NASA designed ventilator. They are thoughtful growers and while the company might appear solely a contract manufacturer (often not a good business), I view them as a contract engineering firm with manufacturing capabilities, since its margin is derived more from smarter / better design than from race to the bottom, low cost manufacturing."

Romaset/Shutterstock.com

Last November, we published an article telling that Pro-Dex, Inc. (NASDAQ: PDEX) was in 3 hedge fund portfolios. Its all time high statistics is 4. PDEX delivered a 40.52% return in the past 12 months.

Our calculations show that Pro-Dex, Inc. (NASDAQ: PDEX) 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

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website.

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