Is Cadre Holdings, Inc. (CDRE) a Smart Long-Term Buy?

Brasada Capital Management, an investment management company, released its Q2,2022 Investor Letter, a copy of which can be downloaded here. The fund returned -25.7% net of fees for the first half of the year. An increase in the 10-year treasury yield leads to a decline in the multiples of investment assets. Check out the top 5 holdings of the fund to have a glimpse of its finest picks for 2022.

In the Q2, 2022 investor letter Brasada Capital Management mentioned that  Cadre Holdings, Inc. (NYSE:CDRE) is their recent addition. . Cadre Holdings, Inc. (NYSE:CDRE), founded in 1964, is headquartered in Jacksonville, Florida, and has a market capitalization of $813.97 million. Cadre Holdings, Inc. (NYSE:CDRE) is a global leader in the manufacturing and distribution of safety and survivability equipment. It has a variety of products including body armor, and explosive ordnance disposal equipment. The one-month return of Cadre Holdings, Inc. (NYSE:CDRE) is -10.07% while its 12-month return is -13.53%. The stock closed at $21.98 per share on July 25, 2022.

Here is what the fund specifically said about Cadre Holdings, Inc. (NYSE:CDRE):

Cadre is another recent addition. We became familiar with the company in December but were unable to build much of a position as the stock ran up. The company recently issued equity in a secondary offering that was poorly received, and the price declined to where it was when we first discovered it. We were able to take advantage of the sell-off and purchase shares. Patience can pay off.

This is a scenario where we are betting on the jockey to build a compounder. In 1996 Warren Kanders bought a tiny company body armor company in Florida that was generating $11M in revenue. This was the seed of Armor Holdings, which eventually went public and was sold to BAE Systems in 2007 for $4.5B. In 2012 BAE sold back to Kanders the body armor and holster business. Kanders has been building the business, which is now called Cadre Holdings, and he took the company public in August of 2021. Kanders is the Chairman and CEO. He still owns almost 50% of the stock…” (Click here to see the full text)

Although Brasada Capital is invested in Cadre Holdings, Inc. (NYSE:CDRE) the stock isn’t in the list of 30 Most Popular Stocks Among Hedge Funds. At the end of Q1, 2022 Cadre Holdings, Inc. (NYSE:CDRE) was in 4 hedge fund portfolios which was unchanged from the previous quarter. Cadre Holdings, Inc. (NYSE:CDRE) shares lost 14.35% of their value over the last 52 weeks.

In February we published another article on Cadre Holdings, Inc. (NYSE:CDRE) where another hedge fund shared their views on the company. If you want to read more investor letters from hedge funds and other leading investors, check out our hedge fund investor letters 2022 page.

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