Facing an uncertain and potentially volatile outlook, investors are being forced to weigh in on debates over cyclical versus non-cyclical exposure, yield versus growth, and public versus private market valuations. With
Compass Diversified Holdings,
investors can get a bit of all flavors.
The miniature conglomerate (ticker: CODI) resembles a publicly traded private-equity firm. It acquires, operates, and eventually sells middle-market businesses in several niche consumer and industrial end markets, while paying dividends from subsidiaries’ cash flows. Its current portfolio includes nine businesses, selling goods as diversified as baby carriers, printed circuit boards, molded foam products, and gun safes.
Compass—a publicly traded partnership—had a recent market value of about $1.3 billion. Management flipped two assets in 2019, hemp producer Manitoba Harvest and recycling-and-waste-disposal firm Clean Earth, for a combined $770 million. Compass put those proceeds back to work this year. In April, Compass closed a $200 million