Strategic Fund Adjustments
Montanaro Asset Management Initiates $13.6M CSW Industrials Stake, Adjusting Other Key Holdings
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Key Points
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In Stride (LRN), Montanaro’s trim coincided with multiple other funds making notable adjustments—e.g., Northwestern Mutual Wealth Management increased its stake by 78.7% in the second quarter, and the article notes that institutional/hedge-fund ownership accounts for 98.24% of Stride shares.
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For Fabrinet (FN), the report adds insider-disclosure detail: director Homa Bahrami sold 2,500 shares on May 22 at an average price of $711.91, for proceeds of $1,779,775.00 (with the transaction described as disclosed in the company/filings context).
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In CSW Industrials (CSW), the article highlights executive selling activity alongside Montanaro’s new stake: EVP Don Sullivan sold 166 shares on April 15 at an average price of $300.26 (total $49,843.16) under a pre-arranged Rule 10b5-1 plan, and the filing notes he retained 21,567 shares after the sale.
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For Federal Signal (FSS), the report provides additional market context through other institutional moves and ownership levels: it cites EverSource Wealth Advisors (up 140.6% in the second quarter) and notes hedge funds/institutional investors own 92.73% of the company’s stock.
London-based Montanaro Asset Management has placed a $13.56 million bet on CSW Industrials, buying 46,200 shares in the fourth quarter of 2025, according to Watchlist News. The move marks one of the firm's most significant new positions in recent memory — and signals a clear shift in strategy toward niche industrial companies.
The British fund, known for its "Quality Growth" approach to small and mid-cap stocks, filed its Q4 2025 disclosure in March 2026, per WhaleWisdom. The filing revealed a broad reshuffling: adding to Federal Signal and Hawkins while trimming Fabrinet and Stride.
CSW Industrials Bet Anchors Montanaro's Industrial Pivot
Montanaro's $13.56 million CSW Industrials stake is the centerpiece of its Q4 move. CSW operates in mission-critical HVAC and plumbing sectors — markets with high barriers to entry and steady demand. Truist Securities analysts hold a "Hold" rating on the stock but raised their price target to $362.00, citing "consistent delivery of above-average organic growth," according to Investing.com.
Even as Montanaro bought in, company insiders were selling. EVP Don Sullivan sold 166 CSW shares on April 15 at $300.26 per share — totaling $49,843 — under a pre-arranged Rule 10b5-1 plan, per GuruFocus. Sullivan retained 21,567 shares after the sale. Analysts view such plan-based sales as routine liquidity moves rather than a red flag.
Federal Signal Surges as Montanaro Lifts Stake by 66%
Montanaro expanded its Federal Signal position by 65.9%, bringing its total to 68,500 shares worth roughly $7.4 million. The timing looks sharp: FSS shares jumped 4.1% on June 19, 2026, following upbeat analyst revisions, according to Zacks Equity Research. CJS Securities and KeyBanc upgraded the stock to "Buy" and "Outperform," with price targets of $130 to $140.
The bull case rests on government spending. Federal Signal makes specialized vehicles for municipal and industrial use — a market tied closely to public budgets. The company's 2026 sales guidance stands at $2.55 billion to $2.65 billion. Institutional and hedge fund investors already own 92.73% of the company's stock, reflecting broad conviction in the name.
Stride and Fabrinet Trimmed Amid Insider Sales and School Losses
Montanaro cut its Fabrinet stake by 16.7%, down to 27,500 shares worth about $12.5 million. The trim coincided with notable insider activity: Director Homa Bahrami sold 2,500 shares on May 22 at $711.91 each, netting roughly $1.78 million, per Stock Titan. Bahrami's sale came near Fabrinet's all-time high of $748 — a move some analysts called "cautious valuation digestion."
For Stride, Montanaro trimmed to 108,000 shares valued at $7.0 million. The online education company faces fresh headwinds: in June 2026, a major Texas partner confirmed it would not renew its agreement, forcing closure of a virtual school, according to William Blair. Analysts at the firm warned this could cut 2027 enrollment by 5%. Institutional investors still own 98.24% of Stride shares, but sentiment is splitting.
Hawkins Gains as Acquisition Spree Reshapes the Company
Montanaro added to its Hawkins position by 11.5%, reaching 65,900 shares worth about $9.4 million. The chemical distribution company is in the middle of a growth-by-acquisition phase. On April 30, 2026, Hawkins completed the purchase of Aqua-Chem, expanding its water treatment reach across the Midwest, according to Investing.com.
The strategy is not without risk. BWS Financial rates Hawkins a "Buy" with a $200 price target, pointing to domestic sourcing advantages. But analysts at Dividend Power call the stock "significantly overvalued," warning that its earnings multiple sits far above its historical average. Hawkins has closed seven deals in early 2026, pushing leverage ratios higher as it chases a national service model.
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