In the last quarter of the year, we added one new position in Ariel Appreciation Fund We purchased Keysight Technologies, Inc. (NYSE:KEYS), a leading test and measurement business for electronics. The company’s long history dates back to its formation as the measurement business of Hewlett-Packard (NYSE:HPE), which has resulted in deeply rooted relationships, leading market share, and a seat at the table during the development of new technologies. Recently spun-off from Agilent Technologies, Inc. (NYSE:A), investors are discarding the shares due to a perceived lack of near-term growth prospects. We see this as an attractive long-term opportunity to own a niche market leader with excellent free cash flow generation. We think it is well-positioned to benefit from several longer-term tailwinds, including 5G wireless testing and growing demand for modular solutions, software-based testing and recurring services.
From John Rogers (Trades, Portfolio)' Ariel Appreciation Fund fourth quarter 2016 commentary.
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