Colfax’s (CFX, Financial) recent purchase of medical devices and services company DJO (and sale of its Air & Gas Handling business) improved its business mix, but its overall cyclicality and balance sheet leverage had investors heading to the exits. We believe management’s strategy is sound, but we ultimately sold our shares to pursue potentially more attractive opportunities.
From Wallace Weitz (Trades, Portfolio)'s Hickory Fund first-quarter 2020 shareholder commentary.
