Although we didn’t fully exit any long positions this quarter, we sold nearly all our shares of XO Group (NYSE:XOXO) (+54% and a top contributor to quarterly performance) at a healthy profit. Longtime shareholders will recall XO entered the portfolio as TheKnot.com. A few years into our holding period, XO installed the current management team, led by CEO Michael Steib and CFO Gillian Munson, who successfully leveraged The Knot’s strength in the bridal market to build an enviable advertising and services business catering to an incredibly attractive audience. The business model has resonated with brides, advertisers, vendors and the investment community alike, and the recent rally saw shares trading above our base case business value.
From Wallace Weitz (Trades, Portfolio)'s second quarter 2018 Partners III Fund shareholder letter.
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