Shares of Biostime International Holdings Ltd. (HKSE:01112
) advanced in the fourth quarter. As a fast growing player in China's baby care industry, the company is benefiting from growing sales of infant milk formula. Recent performance was partially driven by the Chinese government's intention to relax its one-child policy. Biostime also gained market share after its competitor, Danone, encountered product contamination issues. We believe the company is positioned to triple earnings in the next four to five years. We retain conviction in Biostime due to its strong brand positioning and ability to gain market share. (Anuj Aggarwal)
From Ron Baron
)'s Baron Funds' fourth quarter 2013 commentary.