We see Rotork plc (LSE:ROR) as a high-quality industrials company. Rotork provides control automation to pipelines, refineries, power plants, wastewater plants, etc. Less than half of its business is exposed to the oil and gas industry and that is primarily in the form of maintenance revenues, leaving the company less exposed to capital-spending cycles. However, during price meltdowns, the market doesn’t differentiate and Rotork was a detractor for the quarter. Once the dust settles, we believe investors will once again realize that Rotork is a global market leader with a large growth opportunity backed by strong cash flows, high returns, and a conservative and capable management team. (Current and future holdings are subject to risk.)
From Wasatch International Growth (Trades, Portfolio) Fund Q4 2014 Commentary.
