In addition to our short positions, Allergan (NYSE:AGN) (-20% Q4, -21% 2017) was a top detractor in both the quarter and calendar year. Shares fell during the quarter as patents for its dry eye treatment Restasis were invalidated in federal court. After incorporating the earlier-than-expected loss of Restasis profits, we made a downward revision to our business value estimate. Nevertheless, we believe Allergan’s share price decline has overshot reality, and it continues to trade at a significant discount.
From Wallace Weitz (Trades, Portfolio)'s Partner III Opportunity Fund fourth-quarter commentary.
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