The five largest detractors from performance this quarter were Constellation Software, Dollar Tree, Moody’s, SBA Communications, and TD Ameritrade. Across the board, our long-term investment theses are largely unchanged. Mainly, the stock price movements were around quarterly noise. At Dollar Tree (NASDAQ:DLTR), all eyes are on the lackluster Q2 performance of the Family Dollar business, acquired three years ago. Dollar Tree has made good progress on cost structure and consumables merchandising despite a difficult competitive environment. However, successful merchandising of non-consumable items remains elusive. Long-time company insider Gary Philbin just entered his second year as CEO and captain of this ship. We take a long view and see durable advantages of the business extending many, many years. But Gary’s leadership is central to the opportunity.
From Chuck Akre (Trades, Portfolio)'s Akre Focused Fund third quarter 2018 shareholder commentary.
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