FleetCor (FLT, Financial) provides specific-purpose charge cards (used to purchase fuel and lodging) and payment-processing services for commercial and government trucking fleets. It also has a rapidly growing mobile payments business in Brazil. The stock’s recent weakness reflects the filing of a lawsuit by the Federal Trade Commission over the company’s marketing and fee practices. Although the dispute will likely be settled, we believe the uncertainty of the outcome presents an overhang that could last several months. We began reducing the position to mitigate the attendant risk and, later in the quarter, because of the company’s exposure to oil prices. We eliminated the Fund’s holding in June.
From Spiros Segalas (Trades, Portfolio)' Harbor Capital Appreciation Fund second-quarter 2020 commentary.
