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    Jonathan L.

    Managing Director and Senior Equity Research Analyst at TD Cowen

    Jonathan Lin is a Managing Director and Senior Equity Research Analyst at TD Cowen, focused on Internet and Digital Media with primary coverage of companies such as Meta Platforms, Alphabet, Snap, and Pinterest. He is recognized for actionable research and has maintained a strong track record, with a TipRanks analyst rating in the top quartile, a success rate above 65%, and average returns per recommendation exceeding 15%. Jonathan began his finance career at J.P. Morgan and later worked at Barclays and Nomura before joining TD Cowen in 2020, where he continues to contribute notable industry insights. He holds FINRA Series 7, 63, 86, and 87 licenses and is frequently cited for his expertise in evaluating disruptive digital business models.

    Jonathan L.'s questions to Compass Diversified (CODI) leadership

    Jonathan L.'s questions to Compass Diversified (CODI) leadership • Q3 2024

    Question

    Jonathan, on behalf of Lance Vitanza at TD Cowen, asked how the company is thinking about balancing its capital allocation priorities—specifically share buybacks, potential acquisitions, and debt management—given the current market environment and decreasing interest rates.

    Answer

    Executive Elias Sabo described CODI's capital allocation as fluid. He stated the primary strategic goal is pursuing acquisitions to reach $1 billion of EBITDA. However, he emphasized that when the stock price is at a significant discount to intrinsic value, buybacks become a compelling use of capital. He also highlighted the ongoing issuance of preferred stock as a flexible capital source that can be used for deleveraging, funding acquisitions, or supporting high-return internal investments like Lugano's growth.

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