Shares of the leading transportation broker C.H. Robinson Worldwide, Inc. (CHRW) detracted from first quarter performance after the company reported disappointing earnings. Though truckload freight volumes are improving, C.H. Robinson is experiencing margin pressure as cost of capacity increases faster than its ability to pass pricing to shippers. We believe this issue will correct as 2014 unfolds and gross volumes accelerate. Longer term, although we think C.H. Robinson should continue to gain share and benefit from the secular trend of transportation outsourcing to leading logistics firms, we sold our shares for a profit. (Matt Weiss)
From Baron Funds' first quarter 2014 letter to shareholders.