Continuing with the holdings that contributed the least to our absolute performance, Keysight Technologies (KEYS, Financial) reported a slight decline in earnings for the quarter but provided a strong outlook that anticipates a return to double-digit growth next quarter. Even though business activity was disrupted in some of Keysight's end-markets over the past few months, the Company continues to serve the R&D functions of clients in industries and segments that have very favorable long-term growth characteristics, including electric vehicles, 5G wireless, 400Gb Ethernet, aerospace and defense modernization and semiconductor process development. In addition, we think there remains ample upside to margins as Keysight cross-sells new software solutions to an installed base that has grown dramatically over the past few years. We added to our positions in Keysight during the quarter as the stock remains attractive on an absolute and relative basis.
From David Rolfe (Trades, Portfolio)'s Wedgewood Funds third-quarter 2020 shareholder letter.
