Cardinal Infrastructure Group’s (CDNL) Long-Term Growth Opportunity Remains Intact

Cardinal Infrastructure Group’s (CDNL) Long-Term Growth Opportunity Remains Intact

Wed, September 23, 2026 at 5:38 PM GMT+3 3 min read

• CDNL -2.49%
• ^RUT -1.32%

Osterweis Capital Management, an investment management firm, released its Q2 2026 investor update for its "Osterweis Opportunity Fund". You can download a copy of the letter here. The fund returned 35.34% in the quarter, significantly outperforming the Russell 2000 Growth Index's 25.71% gain. Robust corporate profits, AI investment, easing oil-shock concerns, strong labor markets, and consumer spending drove the rally. Security selection played a key role in outperformance, especially in Technology, Industrials, Health Care, and Consumer Discretionary. Conversely, smaller sectors like Consumer Staples, Financials, and Real Estate lagged but had minimal impact overall. Looking ahead, while AI is expected to continue influencing economic growth and market performance, a potential consolidation phase for AI-related stocks is anticipated. Please review the Fund's top five holdings to gain insights into its key selections for 2026.

In its second-quarter 2026 investor letter, Osterweis Opportunity Fund highlighted Cardinal Infrastructure Group Inc. (NASDAQ:CDNL) as a notable contributor. Cardinal Infrastructure Group Inc. (NASDAQ:CDNL) is a civil contracting company focused on site development and infrastructure services. On September 22, 2026, Cardinal Infrastructure Group Inc. (NASDAQ:CDNL) closed at $30.11 per share. Over the past month, Cardinal Infrastructure Group Inc. (NASDAQ:CDNL) declined 27.13%, and YTD its shares gained 24.52%. Cardinal Infrastructure Group Inc. (NASDAQ:CDNL) has a market capitalization of $615.11 million.

Osterweis Opportunity Fund stated the following regarding Cardinal Infrastructure Group Inc. (NASDAQ:CDNL) in its Q2 2026 investor letter:

Our Industrials holdings also outperformed their counterparts in the index, and the biggest contributor was Cardinal Infrastructure Group Inc. (NASDAQ:CDNL). The company reported strong first quarter results, including 64% organic growth, announced their first data center win, and executed a well-priced secondary late in the quarter, generating excitement that more accretive M&A is on the way. The company is still led by its founder and operates in just two states today. We believe there is a meaningful long-term opportunity for Cardinal's superior vertically integrated service model to grow organically and inorganically for many years to come.

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Cardinal Infrastructure Group Inc. (NASDAQ:CDNL) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Cardinal Infrastructure Group Inc. (NASDAQ:CDNL) at the end of the second quarter, which was 20 in the previous quarter. While we acknowledge the potential of Cardinal Infrastructure Group Inc. (NASDAQ:CDNL) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we highlighted that Cardinal Infrastructure Group Inc. (NASDAQ:CDNL) positively contributed to Alger Weatherbie Specialized Growth Fund's performance. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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This article is originally published at Insider Monkey.