AltaRock Partners 13F: Scott Bradford and Mark Massey Value These Stocks

1. TransDigm Group Incorporated (NYSE:TDG)

During the second quarter, AltaRock Partners inched up its stake in TransDigm Group Incorporated (NYSE:TDG) by 6% to 572,164 shares worth $154.84 million; the position amassed 21.70% of the fund’s equity portfolio at the end of June. Other shareholders of TransDigm Group Incorporated (NYSE:TDG) include billionaire Chase Coleman’s Tiger Global Management, Sharlyn C. Heslam’s Stockbridge Partners, and Robert Joseph Caruso’s Select Equity Group.

AltaRock has held shares of TransDigm Group Incorporated (NYSE:TDG) since the fourth quarter of 2014 and has seen the stock advance by more than 39%. During this time, the company managed to increase its revenue every quarter, and even though it missed the consensus in several of them, the revenue has mostly grown by double-digits on a year-over-year basis. TransDigm Group Incorporated (NYSE:TDG) is highly diversified, holding over 30 different businesses in the aerospace businesses. In addition, the company has a long product cycle, as it initially supplies parts to airplane makers, such as Boeing and Airbus and then supplies the aftermarket parts to airline operators. This allows TransDigm to retain its customers and generate stable revenues over long periods of time. The industry in which TransDigm operates is highly regulated, which creates barriers to entry, but also makes sure that TransDigm Group Incorporated (NYSE:TDG) supplies the aftermarket parts if it was the original supplier to the airplane maker.