Is Investing in Crawford United (CRAWA) A Wise Decision?

Alluvial Capital Management, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. Alluvial Fund closed out an excellent year on a quiet note, returning 0.5% in the fourth quarter. For the full year, Alluvial Fund rose 31.0%, nearly double the returns of benchmarks. 2021 was the finest year in Alluvial Fund’s history, the first in which our net return to limited partners exceeded 30%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Alluvial Capital Management, in its Q4 2021 investor letter, mentioned Crawford United Corporation (NYSE: CRAWA) and discussed its stance on the firm. Crawford United Corporation is a Cleveland, Ohio-based investment holding company with a $99.7 billion market capitalization. CRAWA delivered a -2.50% return since the beginning of the year, while its 12-month returns are up by 30.00%. The stock closed at $29.25 per share on January 21, 2022.

Here is what Alluvial Capital Management has to say about Crawford United Corporation in its Q4 2021 investor letter:

“For the second year running, Crawford United celebrated the new year with acquisitions. This time around, Crawford spent $4 million to acquire Florida-based Reverso Pumps and Separ of the Americas. Assuming a purchase multiple of 6x EBIT, the acquisitions will increase Crawford’s earnings by 15 cents per share. While individually they may seem small, the continued acquisition of quality niche industrial companies adds up to major growth in Crawford United’s earnings power. I expect the company’s results to feel some short-term pressure from supply chain troubles and inflation, but I like what the company is building. I am confident that Crawford’s earnings will exceed $10 per share at some point in the next decade and its shares will rise accordingly.”

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Our calculations show that Crawford United Corporation (NYSE: CRAWA) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Crawford United Corporation (NYSE: CRAWA) delivered a -13.82% return in the past 3 months.

In November 2021, we also shared another Alluvial Capital’s third-quarter 2021 views on CRAWA 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.