Alternatively, there were a few notable performance detractors in the period. Branded food and beverage product company, J.M. Smucker Company (NYSE:SJM) finished the quarter down -12.74%, after falling short of consensus expectations. Investors were also disappointed with the company’s full year 2019 guidance, which was mostly driven by higher than anticipated expenses. While we acknowledge increased marketing spend is necessary to support branded growth and Fiscal 2019 will be an investment year with lower than expected margins, we believe SJM has a portfolio of iconic, market leading brands that produce consistent returns. Additionally, SJM’s strong cash generation capabilities should continue to allow the company to deploy capital towards brand investment and business expansion initiatives, as well as return cash to shareholders.
From John Rogers (Trades, Portfolio)' Ariel Fund second quarter 2018 shareholder letter.
