We had less confidence in the long-term prospects for Norway's TGS-NOPEC Geophysical (OSL:TGS, Financial), which we exited in October. The company provides geophysical marine seismic data to oil exploration companies and was the second-largest detractor on a position basis. While we like TGS-NOPEC's business model, we believe that structural changes in oil & gas exploration, as well as secular shifts toward cleaner energy, will ultimately reduce its long-term growth and consequently the rate at which it can compound value.
From Chuck Royce (Trades, Portfolio)'s Royce Investment Partners Premier Fund fourth-quarter 2020 manager commentary.
