Upslope Capital Management, an investment management firm, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. The third quarter was challenging, and the fund returned -4.7% net, compared to -2.5% return for the S&P Midcap 400 ETF (MDY) and -0.1% return for the HFRX Equity Hedge Index. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Upslope Capital discussed stocks like CACI International Inc (NYSE:CACI) in the Q3 2022 investor letter. Headquartered in Reston, Virginia, CACI International Inc (NYSE:CACI) is an expertise and technology provider to the US federal government. On October 19, 2022, CACI International Inc (NYSE:CACI) stock closed at $261.93 per share. One-month return of CACI International Inc (NYSE:CACI) was -5.82% and its shares lost 7.24% of their value over the last 52 weeks. CACI International Inc (NYSE:CACI) has a market capitalization of $6.135 billion.
Here is what Upslope Capital specifically said about CACI International Inc (NYSE:CACI) in its Q3 2022 investor letter:
“CACI International Inc (NYSE:CACI) provides specialized technology and consulting services, primarily to U.S. defense and intelligence agencies. The U.S. Army is CACI’s single largest customer. This position replaces BWXT in Upslope’s “defense basket” (articulated in Q1 on p. 4). CACI’s business is mostly split across Expertise (providing talent to government agencies – e.g. software engineers) and Technology (design and delivery of specific technology-oriented services and products, including for example, battlefield hardware). The company offers its services and products in support of both day-to-day agency operations and specific missions.
At a high-level, CACI reminds me of another Upslope long in an unrelated sector: Silgan Holdings (packaging/dispensing and food can business). Both are truly sleepy value stocks that trade for low doubledigit earnings multiples, but have a strong history of steady value creation and free cash flow per share growth. Both the stocks and underlying businesses appear very well-positioned for the uncertain macro (or geopolitical, in CACI’s case) environment we’re likely to face in the years ahead. Other notable thesis points for CACI specifically:
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Long-term Geopolitical & Other Tailwinds – like other components of Upslope’s defense basket, CACI should benefit from an attractive defense spending environment for years to come. CACI should also benefit from IT modernization efforts in U.S. government agencies, as well as its strength in cyber/electronic warfare offerings…” (Click here to read the full text)
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CACI International Inc (NYSE:CACI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held CACI International Inc (NYSE:CACI) at the end of the second quarter which was 25 in the previous quarter.
We discussed CACI International Inc (NYSE:CACI) in another article and shared the list of the best cybersecurity stocks to buy. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
