A current contrarian investment is Kuehne+Nagel (XSWX:KNIN), one of the world’s leading freight forwarders, whose business is currently out of favor due to the slowdown in global trade that we believe will be a temporary headwind. This Swiss-based company works behind the scenes to arrange the transport of heavy cargo typically from a manufacturer in one part of the world to a buyer who may be thousands of miles away. Logistics businesses like Kuehne+Nagel not only play a critical role in global trade but also are essential in managing the increasingly complex supply chain of global multinationals. While trade volume is cyclical in nature over the short term, we believe that the long-term trend in global trade favors growth and Kuehne+Nagel is well positioned to benefit from this tailwind in the years ahead.
From Chris Davis (Trades, Portfolio)’ Davis International Fund Semi-Annual Review 2014.
