We liquidated our positions in T.J. Maxx (TJX, Financial) and used the proceeds to add to faster growing businesses. The Company continues to be exceedingly well-run and has pioneered many new concepts in the off-price retail industry and managed to expand the concept internationally, where price umbrellas have emerged. However, there are few markets where that off-price opportunity is better than in the U.S. We think T.J. Maxx is further along the maturity curve in the U.S., relative to another portfolio holding, Ross Stores, which also competes well within the off-price space. Ross continues to have ample room to grow its footprint in the highly lucrative off-price space through core concept expansion and potential entry into new, relatively underpenetrated retail segments, particularly in home.
From David Rolfe (Trades, Portfolio)'s Wedgewood Partners first quarter 2018 shareholder letter.
