In the quarter, we increased our position in power sports vehicle company BRP, Inc (TSX:DOO). We believe the recent decline in the stock is an opportunity and current difficulties involving Russian sales, poor weather and a slight delay in moving manufacturing to Mexico should create easy comparisons for FY 2016 (end January 2016) and stronger sentiment in the stock. We believe the company’s strategy has not changed and it continues to innovate and introduce new product while lowering costs. While this strategy will take another two years before full implementation, it should set the stage for growth of revenue, earnings and cash flow and create an even stronger company. Its balance sheet remains strong and management has indicated it will look at the initiation of possible dividends. (David Baron)
From Ron Baron (Trades, Portfolio)’s Baron Growth Fund Q4 2014 Quarterly Report.
