Our “new” purchase is actually a return engagement: Travis Perkins (LSE:TPK). Travis is the largest supplier of building materials in the U.K., serving both the trade market via its Travis Perkins brand as well as the do-it-yourself market via its Wickes brand. The share price came under considerable pressure following the U.K.’s vote to leave the European Union, which we believe provides us with an attractive entry point. Brexit will likely result in a period of slower near-term demand for Travis Perkins, but over the medium term we believe that demand for building materials in the U.K. will grow due to structural shortages of housing stock and infrastructure. We expect Travis will continue to gain market share, given its leading brands and best in class management team.
From David Herro (Trades, Portfolio)'s Oakmark Global Fund fourth quarter 2016 commentary.
