Rexnord Corp. (RXN, Financial), a diversified industrial, fell 20.6% in the quarter, when it announced that it would not be sold at the conclusion of an effort to get outside bids. Then the private equity owners announced a secondary offering, which was like rubbing salt in the wound.We added to our position on the offering because we found the price compelling and believe the stock can double off the trough valuation from growth in earnings and multiple expansion.
From Ron Baron’s second quarter 2013 commentary.
From Ron Baron’s second quarter 2013 commentary.
