Here’s What Makes Transcat (TRNS) a Great Investment

Headwaters Capital, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly portfolio net return of 4.5% was recorded by the fund for the fourth quarter of 2021, underperforming the Russell Mid Cap Index that delivered a +6.4% return for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Headwaters Capital, in its Q4 2021 investor letter, mentioned Transcat, Inc. (NASDAQ: TRNS) and discussed its stance on the firm. Founded in 1964, Transcat, Inc. is a Rochester, New York-based industrial process instruments manufacturer company with a $549.0 million market capitalization, and is currently spearheaded by its CEO, Carl E Sassano. TRNS delivered a -21.02% return since the beginning of the year, while its 12-month returns are up by 49.07%. The stock closed at $73.00per share on March 11, 2022.

Here is what Headwaters Capital has to say about Transcat, Inc. in its Q4 2021 investor letter:

“Top Contributor: Transcat (“TRNS”) +43%. Transcat, which was added to the portfolio during Q3 ’21, was the biggest contributor to portfolio performance during Q4. TRNS announced earnings that exceeded expectations during the quarter, primarily in the ervice segment where revenue and margins continue to demonstrate strong trends. Management also provided upbeat commentary surrounding potential growth from larger lab customers, which have paused all outsourcing activity since the onset of COVID.”

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Our calculations show that Transcat, Inc. (NASDAQ: TRNS) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. TRNS was in 8 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 8 funds in the previous quarter. Transcat, Inc. (NASDAQ: TRNS) delivered a -19.26% return in the past 3 months.

In March 2022, we also shared another hedge fund’s views on TRNS 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.