FedEx (FDX) was the top contributor for the quarter, returning 26%. FedEx reported solid second quarter results; its express division alone generated 140 basis points of year-over-year margin improvement. These results show that their cost-savings plans are continuing to gain traction. The ground division also performed well, producing 8% year-over-year volume growth. This marked the 55th consecutive quarter that the ground division has gained market share – a trend that should continue for many more years. Management also improved profitability and deployed the company’s excess capital into what we believe are value-creating activities. When we initially invested in FedEx, we believed that the company could substantially improve its margins and capital allocation, and we are pleased that management executed on – and the market appropriately recognized – such opportunities for sustained value growth.
From the Oakmark Global Select Fund fourth quarter 2013 commentary.