Sluggish gaming activity, primarily in Macau, continued to plague Melco International Development (HKSE:00200, Financial) (Hong Kong), the holding company that owns more than one-third of Melco Crown Entertainment in addition to other casino gaming and tourism assets. It was the largest detractor to performance for the fiscal year ended September 30. In July, Macau eased visa restrictions for visitors from mainland China, making it easier for tourists to access its gaming facilities, but gaming revenues have stayed depressed. We remain optimistic on Macau’s long-term prospects due to the increasing wealth of Chinese citizens and the large infrastructure projects that should help facilitate Macau’s growth.
From David Herro (Trades, Portfolio)'s Q3 Oakmark International Small-Cap Fund commentary.
