Marriott Vacations Worldwide (VAC) was another recent purchase after being spun-out of Marriott International (MAR). Marriott Vacations Worldwide is the second largest (behind Wyndham) developer, marketer and financier of timeshare properties. It has over 400,000 owners of its properties in 64 resorts operated under the Marriott Vacation Club, Ritz-Carlton Destination Club, and Grand Residences by Marriott brands. The business has four inter-related revenue and profit streams: the development and sale of timeshare resort properties, the financing of those sales, the management of the resorts, and the rental of unsold or unused inventory. We believe Marriot Vacations offers the two things that can make for significant outperformance in a spin-out: margin improvement potential and a deeply discounted valuation. We believe that both of these factors will improve over the next several years, and an improving economy can be a significant catalyst to boost valuations. Frankly, we believe the stock has performed extremely well since being spun-out late in 2011, and while we remain optimistic long-term, the stock price has already exceeded our short-term expectations.