Positions eliminated during the past quarter include: ABB Ltd. (ABB), Ann Inc. (ANN), Baxter International (BAX), International Game Technology (IGT), TRW Automotive Holdings (TRW), and URS Corporation (URS).
On July 10, 2014, TRW Automotive Holdings (TRW) confirmed that it has received a preliminary, non-binding proposal from ZF Friedrichshafen AG to acquire the company. Although TRW did not disclose terms at the time of the July announcement, Bloomberg News reported the acquisition value at $110 to $112.50 per TRW share. As value investors who usually have to wait patiently for a company to improve operating results and for the market to ultimately recognize the value we see, these acquisitions not only came as a pleasant surprise, they allowed us to reach our value in each of these companies over a much shorter holding period. Continue Reading »