Avon Products (NYSE:AVP) is a manufacturer and marketer of beauty and related products. Avon shares responded positively to developments during the quarter, including continued improvement in local currency sales and the identification of $70 million of cost savings in 2016. In addition, the outlook for the Brazilian economy, Avon’s single largest market, is slowly improving. Although the stock responded well this quarter to positive developments, the allocation is sized in accordance with the economic headwinds that still persist and the variance of possible outcomes among our estimates of intrinsic value.
From Wallace Weitz (Trades, Portfolio)'s Partners Value Fund third-quarter commentary.
