- Supply chain challenges are impacting the business, but Compass' portfolio is largely acyclical and should see strong underlying demand.
- I still believe both 5.11 and Arnold could ultimately be even stronger contributors to the business than they are today, but more patience will be required.
- Management has made it clear that they are looking for more growth, with an increased willingness to invest in growth projects at portfolio companies and acquire faster-growing portfolio companies.
- I'm expecting a somewhat faster pace of growth from Compass, with increased distribution-paying capability down the line, and the shares look undervalued today.
For further details see:
A More Aggressive Compass Diversified Holdings Could Be Better For Its Shareholders