Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Compass Diversified Holdings Looks To Build Value The Old-Fashioned Way

Business Development Companies (BDCs) have gotten quite a bit more attention in recent years, due at least in part to the exposure they offer to smaller companies and the potential for outsized distributions. While Compass Diversified Holdings (NYSE:CODI) isn't a BDC, it's structured as a trust designed to acquire and manage controlling stakes in private companies, it seems "close enough for jazz" to many investors and analysts and the shares have done well lately.

I do believe this is an interesting company. Although valuation is higher than I'd like, I don't see a lot of risk in the company's portfolio, and I believe management's price and value discipline can serve companies well over the long term. Accounting rules...

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