Shares of semiconductor company Mellanox Technologies Ltd. (MLNX, Financial) fell in the third quarter in the wake of its late quarter announcement that it had acquired EZChip (EZCH), creating concerns around the current level of organic growth. Initial results for the third quarter released after quarter end alleviated these concerns and sent the stock back to its pre-M&A levels. We believe the organic growth path for Mellanox remains intact, and this acquisition will be meaningfully accretive to earnings and provide substantial cost and revenue synergies that will accrue to shareholder value over time. (Gilad Shany)
From Baron Funds' Baron International Growth Fund shareholder letter for third quarter 2015.
