Babcock International (LSE:BAB, Financial) rebounded from prior quarter lows, gaining more than 25% at the end of June, after the overhang on the stock was eliminated. Investors were apprehensive that the contract profitability and balance sheet review would trigger the need for a capital raise. Instead, the company will take impairments, reduce costs by restructuring and improve its balance sheet position by divesting certain businesses.
From Bernard Horn (Trades, Portfolio)'s Polaris Global Value Fund second-quarter 2021 letter.
