DeVry, Inc. (DVRY
), which operates post-secondary education programs focused on business, technology, and health care, fell meaningfully during the quarter. Its earnings results missed expectations, and its estimates for 2013 profitability were sharply lowered. New student enrollments were disappointing, and continued investment spending resulted in negative operating leverage. We are hopeful that the tide will turn for DeVry's business, given the company's solid regulatory record, impressive history of graduate placement, and its focus on areas, like nursing, that should experience sustainable job creation.
From Baron Funds’ third quarter commentary.