Shares of Cepheid (CPHD, Financial), a provider of equipment for molecular diagnostic tests, were down in the fourth quarter. The company took down full year 2015 guidance by about 1% (excluding the effects of foreign currency), and took down longer-term operating margin guidance in 2016 and 2017. Given these moves, we sold the position. While we believe the company’s technology and reach of its products is unique, we are also mindful that it could take additional time to empirically assess the ultimate success of the expansion strategy. (Randy Gwirtzman)
From the Baron Funds Opportunity Fund fourth quarter 2015 commentary.
