Meridian Contrarian Fund on CACI International Inc.
Thesis
CACI provides mission-critical information technology and defense capabilities to the U.S. government, which accounts for nearly all of its revenue. Meridian has owned the company for more than a decade as it has expanded its role in priority areas including cyber, space and counter-drone capabilities. Concerns over government defense funding pressured the shares during the quarter and led the fund to reduce the position. Meridian continues to view CACI's capabilities as differentiated and aligned with priority spending needs for the U.S. and its allies.
“We reduced our position in the quarter and still view CACI’s capabilities as differentiated and a priority spending area for the U.S and our allies.”
Key risks
- Concerns about the U.S. government's ability to fund defense spending have pressured the shares.