We took advantage of the stock market’s over-reaction to food products company Post Holdings, Inc.’s (POST) weak quarterly results to initiate a position in the Fund. We also initiated a position in Vantiv, Inc. (VNTV) as the company’s shares traded lower after a mild third quarter disappointment in the financial institution segment of its business. The shares then rebounded during the fourth quarter as investors focused on the long-term growth story and attractive valuation. We believe Vantiv has an attractive growth profile and should continue to generate high single-digit organic revenue growth and mid-teens earnings per share growth.
We eliminated our position in oil and gas exploration and production company EOG Resources, Inc. (EOG) as a result of what we believe to be structural changes in the competitive dynamics of the global oil industry and subsequent change to our estimate of intrinsic value. A combination of domestic oil production growth, an increase in the supply of oil from Libya, weakening demand trends in Europe and Asia, and OPEC’s unwillingness to reduce output to mitigate anticipated over-supply led to a significant decline in oil prices as well as a decline in the oil price outlook over the next few years.
