Is CAE Stock a Good Long-Term Buy?

Artisan Partners, an investment management company, released its “Artisan Global Discovery Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, its Investor Class fund APFDX returned -5.73%, Advisor Class fund APDDX posted a return of -5.72%, and Institutional Class fund APHDX returned -5.63%, compared to a return of -6.82% for the MSCI All Country World Index. In addition, please check the fund’s top five holdings to know its best picks in 2022

In the third-quarter letter, Artisan Partners discussed stocks like CAE Inc. (NYSE:CAE). Headquartered in Saint-Laurent, Canada, CAE Inc. (NYSE:CAE) is a simulation training and critical operations support provider that operates through Civil Aviation, Defense and Security, and Healthcare segments. On November 14, 2022, CAE Inc. (NYSE:CAE) stock closed at $21.74 per share. One-month return of CAE Inc. (NYSE:CAE) was 26.03% and its shares lost 25.37% of their value over the last 52 weeks. CAE Inc. (NYSE:CAE) has a market capitalization of $6.936 billion.

Artisan Partners made the following comment about CAE Inc. (NYSE:CAE) in its Q3 2022 investor letter:

“CAE Inc. (NYSE:CAE) is a global flight simulation and outsourced training company for civil and military aviation. Shares were weaker during Q3 as a couple of one-time issues within two of the company’s defense segment contracts weighed on profitability. Despite this, the company’s civil business, which is 70% of its operating profit and core to our investment thesis, remained strong. We continue to believe the company is well-positioned to benefit from a global wave of civil pilot retirements (and thus, shortages) and growing military budgets. Longer term, increasing outsourcing of civil and military pilot training is a steady trend as airlines and militaries seek to reduce hourly training costs and avoid large, fixed investments. We used the share weakness in the quarter to add to our position.”

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CAE Inc. (NYSE:CAE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 6 hedge fund portfolios held CAE Inc. (NYSE:CAE) at the end of the second quarter which was 10 in the previous quarter.

We discussed CAE Inc. (NYSE:CAE) in another article and shared ClearBridge Investments’ views on the company. 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.