Bright Horizons Family Solutions, Inc., the provider of corporate-sponsored childcare, rose in the quarter as the company reported accelerating trends in organic growth and profitability and announced a nice acquisition, the first in some time. The trading multiple has increased, which we believe is justified, as the market has recognized the company’s premium business model, its strong long-term growth prospects from its base business and new initiatives, and its shareholder friendly program to return excess capital generated. We expect continued strong compound growth, which will be buffeted by the success of the company’s aggressive rollout of high return “consortium” centers, which are just turning profitable.
From Baron Funds’ second quarter 2015 commentary.
