Why a Fund Trimmed a $41 Million CompoSecure Stake Amid a 47% Stock Run

Company Overview - CompoSecure, Inc. specializes in high-security payment cards and digital asset storage solutions, utilizing advanced materials and proprietary technology [4][7] - The company was founded in 1910 and is headquartered in Somerset, New Jersey [7] Financial Performance - For the third quarter, CompoSecure reported net sales of $120.9 million, reflecting a 13% year-over-year increase [8] - The gross margin expanded to 59%, and pro forma adjusted EBITDA increased by 30% to $47.7 million [8] - The company raised its full-year 2025 guidance and set targets for 2026, indicating expectations for continued double-digit growth [8] Market Position and Valuation - As of the latest report, CompoSecure has a market capitalization of $2.45 billion and a share price of $19.37, which has increased by 47% over the past year [3][4] - The company’s revenue for the trailing twelve months (TTM) stands at $160.68 million, with a net income of -$216.66 million [4] Recent Developments - Tikvah Management reduced its stake in CompoSecure by 280,000 shares, resulting in a position value decrease of approximately $9.31 million [2][3] - Following this sale, CompoSecure remains the third-largest holding in Tikvah's portfolio, representing 12.11% of its $338.71 million in reportable U.S. equity assets [2][3] Strategic Changes - CompoSecure is undergoing a business combination with Husky Technologies, valuing the combined entity at approximately $7.4 billion, which introduces new complexities and risks [9] - This deal is expected to be accretive but shifts the company's focus from a specialized security and payments manufacturer to a broader business model [9]