Cray (CRAY) was a significant outperformer for the Fund in the fourth quarter. For over a year, management has been indicating that IBM’s re-positioning within the high performance computing space would create opportunities for Cray to take share. Given significant upside surprises to total revenue the last couple quarters, it appears this scenario is starting to play out. In addition, after a few fits and starts, it appears Cray is gaining traction in the rapidly evolving big data space with a couple of new high performance computer offerings. A strong competitive position, coupled with solid growth prospects and a very reasonable valuation support our large holding in Cray.
From Mairs & Power Small Cap Fund 4th quarter investor letter.
