Long Cast Advisers on Pro-Dex (PDEX): “We are Happy to Patiently Invest Alongside”

New York-based Long Cast Advisers LLC, a boutique investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. Individual account returns ranged from flat to +4%. Year-to-date cumulative net returns through 3Q21 were 43%. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Long Cast Advisers, in its Q3 2021 investor letter, mentioned Pro-Dex, Inc. (NASDAQ: PDEX) and discussed its stance on the firm. Pro-Dex, Inc. is an Irvine, California-based surgical and medical instrument manufacturing company with an $82.8 million market capitalization. PDEX delivered a -27.41% return since the beginning of the year, while its 12-month returns are down by -40.24%. The stock closed at $22.48 per share on November 26, 2021.

Here is what Long Cast Advisers  has to say about Pro-Dex, Inc.  in its Q3 2021 investor letter:

“I’ve written more sparingly about PDEX. It is, on the surface, a contract medical device manufacturer, which tends to be a good – not great business – but this company is more of a contract engineering firm – a better business – with a manufacturing capability wrapped around it.

The company’s marquee product is essentially (I’m not doing it justice) a smart surgical drill with variable speeds and specific torque limiting technology originally designed for implanting craniofacial screws without slippage (best to not be a client). Recently, the company has been utilizing some of the same technology to expand into other addressable markets (thoracic drivers and ENT shavers) through existing and new distribution channels. The company is in the process of substantially expanding its manufacturing footprint with capacity for $80M-$100M in sales, up from under $40M in FY21 (ended June 30th). The company has a history of patient management with a Chairman, who himself runs a hedge fund, and who is also a thoughtful, successful and idiosyncratic investor we are happy to patiently invest alongside.”

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Based on our calculations, Pro-Dex, Inc. (NASDAQ: PDEX) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. PDEX was in 2 hedge fund portfolios at the end of the third quarter of 2021, compared to 1 fund in the previous quarter. Pro-Dex, Inc. (NASDAQ: PDEX) delivered a -12.53% return in the past 3 months.

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