We also own Acuity Brands, Inc. (NYSE:AYI), which provides LED lighting systems for commercial real estate facilities. After our initial purchase in 2011, the stock dropped off sharply after an earnings miss. We used the weakness to significantly increase our position. At the time of purchase, Acuity’s revenues were $1.7 billion. Annual revenues have since grown. to $2.7 billion.With its strong brands, extensive network, and expertise in complex lighting schemes, we think Acuity will benefit from the construction trend in energy-smart buildings and the growing number of buildings being retrofit with energy efficient lighting systems.
From the Baron Funds Small Cap Fund winter newsletter 2016.
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