Smartkarma AI, Smartkarma

αSK

Smartkarma AI

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Bottom-Up

Compass Diversified Holdings / Equity Bottom-Up

<ul>
 <li>Compass Diversified is navigating a significant operational and reputational crisis following the discovery of pervasive fraud at its subsidiary, Lugano, necessitating a full restatement of financial statements for fiscal years 2022 through 2024.</li>
 <li>The company's diversified model, with eight other subsidiaries remaining operational and cash-flow positive, provides a potential buffer against the isolated incident at Lugano, though the event has exposed significant governance and oversight weaknesses.</li>
 <li>Financial performance has been weak, characterized by negative net income and deteriorating operating and free cash flows over the past three years, raising concerns about the sustainability of its historically attractive dividend.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  Compass Diversified is navigating a significant operational and reputational crisis following the discovery of pervasive fraud at its subsidiary, Lugano, necessitating a full restatement of financial statements for fiscal years 2022 through 2024.
  The company's diversified model, with eight other subsidiaries remaining operational and cash-flow positive, provides a potential buffer against the isolated incident at Lugano, though the event has exposed significant governance and oversight weaknesses.
  Financial performance has been weak, characterized by negative net income and deteriorating operating and free cash flows over the past three years, raising concerns about the sustainability of its historically attractive dividend.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: Compass Diversified Holdings (CODI US) - Dec 2025

External reports (aggregated public sources), Value Investors Club

Value Investors Club (VIC)

External reports (aggregated public sources)

Value Investors Club

Key points (machine generated)<ul><li>CODI's portfolio includes strong performers like BOA and Marucci, but Lugano's unexpected financial misstatements led to a 60% drop in equity.</li><li>The preferred securities B and C are now appealing, offering yields of 13-14% at about 60% of face value, with a significant equity cushion.</li><li>The Lugano incident raises concerns about potential implications for other members of CODI's externally managed team.</li></ul>This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points (machine generated)CODI's portfolio includes strong performers like BOA and Marucci, but Lugano's unexpected financial misstatements led to a 60% drop in equity.The preferred securities B and C are now appealing, offering yields of 13-14% at about 60% of face value, with a significant equity cushion.The Lugano incident raises concerns about potential implications for other members of CODI's externally managed team.This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Compass Diversified Holdings (CODI.PC) - Tuesday, Jun 3, 2025

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Financial Select Sector SPDR F / Technical Analysis

We continue to see a steady flow of risk-on signals that have us moving toward an outright bullish outlook for the broad US equity market. Below we discuss several bullish developments that leads us to believe we are close to exiting the "mixed market environment" that we have referenced since late March.Charts highlighted: XLF, KBE, Copper, US Dollar, IWD, XLY, Bitcoin, S&amp;P 500, APO, LPLA, ARCC, JHG, KKR, ALLY, CACC, OMF, CIT, WD, GATX, LC, CODI, WRLD, ATLC, BCPC, TROX, ASPN, ASIX, LXU, HWKN, MOS, CF, ICL, SQM, UAN, IPI

We continue to see a steady flow of risk-on signals that have us moving toward an outright bullish outlook for the broad US equity market. Below we discuss several bullish developments that leads us to believe we are close to exiting the "mixed market environment" that we have referenced since late March.Charts highlighted: XLF, KBE, Copper, US Dollar, IWD, XLY, Bitcoin, S&amp;P 500, APO, LPLA, ARCC, JHG, KKR, ALLY, CACC, OMF, CIT, WD, GATX, LC, CODI, WRLD, ATLC, BCPC, TROX, ASPN, ASIX, LXU, HWKN, MOS, CF, ICL, SQM, UAN, IPI

Upgrading Financials To Overweight; Downgrading Communications To Market Weight

United States

Compass Diversified Holdings is an investment holding company. The Company acquires controlling interests in profitable small to middle market businesses in niche industries as well as works with management to pursue growth opportunities and provide strategic support.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Compass Diversified Holdings (CODI US)

Primer: Compass Diversified Holdings (CODI US) - Dec 2025

Compass Diversified is navigating a significant operational and reputational crisis following the discovery of pervasive fraud at its...

αSK

Compass Diversified Holdings (CODI.PC) - Tuesday, Jun 3, 2025

In April 2023, CODI's equity dropped 60% due to unexpected financial misstatements from Lugano, making its preferred shares more appealing despite...

Value Investors Club (VIC)

Upgrading Financials To Overweight; Downgrading Communications To Market Weight

We are upgrading Financials to overweight; Financial Sector ETFs (XLF, RYF), banks (KBE, KRE), and insurance stocks (KIE) are all breaking out to...

Vermilion Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)