Other holdings underperformed in the quarter. Bristow Group, Inc. (NYSE:BRS) is a helicopter services provider to the offshore oil and gas industry. The stock plummeted -79.97% during the quarter as the company battled the perfect storm of falling oil prices and uncertainty surrounding oil field services spending. Additionally, BRS announced the acquisition of privately-owned Columbia Helicopters. In our view, the deal makes sense because it diversifies the company’s business mix while strengthening its balance sheet. That said, the structure of the transaction involves convertible debt securities which resulted in a significant selling of shares. This, in combination with weakening energy prices proved to be a real headwind for the company. BRS needs to continue to transform its oil and gas business to be profitable in current market conditions. We would be the first to admit we are at the point of maximum pain and are monitoring the position very closely.
- From John Rogers (Trades, Portfolio)' fourth-quarter 2018 Ariel Fund shareholder letter.
