Flotek Industries, Inc. (FTK, Financial) is primarily a supplier of chemical additives to the global oil & gas industry with some ancillary oilfield service operations. The company has a proprietary product dubbed “complex nano-fluid (CnF)” that is proving to be extremely effective at increasing oil & gas shale well productivity. The company’s shares rebounded in the third quarter following stronger-than-expected results in the second quarter that were principally driven by CnF sales and margins. Given the recent volatility in the energy markets we exited the position in the quarter in order to reallocate capital towards higher conviction ideas. We will continue to monitor developments at the company going forward.
From Baron Opportunity Fund's third quarter 2015 letter.
