RGAIA Investment Advisors, an independent, privately owned asset management firm recently published its second-quarter 2022 investor letter – a copy of which can be downloaded here. RGAIA Investment Advisors believe over the long run, letting winners ride is critical to exceptional results, and letting companies intrinsically compound is critical for optimizing after-tax results. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.
In its Q2 2022 investor letter, RGAIA Investment Advisors mentioned Cytek Biosciences, Inc. (NASDAQ:CTKB) and explained its insights for the company. Founded in 1992, Cytek Biosciences, Inc. (NASDAQ:CTKB) is a California-based cell analysis solutions company with a $1.5 billion market capitalization. Cytek Biosciences, Inc. (NASDAQ:CTKB) delivered a -27.88% return since the beginning of the year, while its 12-month returns are down by -51.42%. The stock closed at $11.77 per share on September 05, 2022.
Here is what RGAIA Investment Advisors has to say about Cytek Biosciences, Inc. (NASDAQ:CTKB) in its Q2 2022 investor letter:
“Cytek Biosciences, Inc (NASDAQ:CTKB)– Cytek is one of those companies we think might end up a true gift from this environment. The company went public in 2021 and raised considerable capital due to the enthusiasm of the opportunity for Cytek to fundamentally change flow cytometry–a critical piece of biological research and diagnostics to analyze cells or particles. Flow cytometers are everywhere, though we do not often hear about them.
Fast forward to today and Cytek’s shares have collapsed from the IPO price, despite the company being free cash flow positive and holding 30% of its market cap in net cash ($362 million). The company’s proprietary technology replaced expensive vacuum tubes with much cheaper avalanche photodiodes, which allows for both higher precision, faster throughput and most importantly lower cost of ownership and operation. What customers don’t want better quality at a lower price?
Competition is not even close. Cytek sells flow cytometers, but importantly they are now building a reagent business to complement their instrument. This means they will have a razor blade and business model, selling the instrument with a nice profit margin and the reagents for throughput at an even better margin. Despite considerable growth investments, the company is profitable (on an adjusted EBITDA and cash flow basis) today and will be even more so in the future.”
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Our calculations show that Cytek Biosciences, Inc. (NASDAQ:CTKB) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Cytek Biosciences, Inc. (NASDAQ:CTKB) was in 14 hedge fund portfolios at the end of the second quarter of 2022, compared to 18 funds in the previous quarter. Cytek Biosciences, Inc. (NASDAQ:CTKB) delivered a 9.59% return in the past 3 months.
In August 2022, we also shared another hedge fund’s views on Cytek Biosciences, Inc. (NASDAQ:CTKB) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.
Disclosure: None. This article is originally published at Insider Monkey.
