Is it Wise to Invest in Kadant, Inc. (KAI)?

Wasatch Global Investors, an investment management firm, published its “Wasatch Small Cap Value Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. The Wasatch Small Cap Value Fund—Investor Class gained 6.60% in the fourth quarter of 2021 and outperformed its benchmark. For the one-year period ended December 31, 2021, the Fund gained 25.38%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Wasatch Small Cap Value Fund, in its Q4 2021 investor letter, mentioned Kadant Inc. (NYSE: KAI) and discussed its stance on the firm. Founded in 1991, Kadant Inc. is a Westford, Massachusetts-based pulp and paper company with a $2.2 billion market capitalization, and is currently spearheaded by its CEO, Jeffrey L. Powell. KAI delivered a -14.27% return since the beginning of the year, while its 12-month returns are up by 12.73%. The stock closed at $197.60 per share on March 08, 2022.

Here is what Wasatch Small Cap Value Fund has to say about Kadant Inc. in its Q4 2021 investor letter:

“Positions in secular growers also provide ballast against broader trends, as do companies with steady, recurring revenues. For instance, industrial equipment company Kadant, Inc. (KAI) generates 60% of revenues from its recurring parts and consumables business lines, which should help it to effectively navigate this period of heightened uncertainty in the macro environment.”

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Our calculations show that Kadant Inc. (NYSE: KAI) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. KAI was in 7 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 11 funds in the previous quarter. Kadant Inc. (NYSE: KAI) delivered a -16.13% return in the past 3 months.

In January 2021, we also shared another hedge fund’s views on KAI in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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