The second largest sector contributor was materials, where the Fund was both overweight and outperformed. The Norwegian fertilizer company, Yara International (OSL:YAR), rose 20% as the company reported good quarterly revenues on the back of increased nitrate/urea product pricing. Yara’s fertilizers were in high demand, as recent drier weather trends proved promising for U.S. farmers. A U.S- China agricultural deal may further hasten the crop planting process. Yara also curtailed its capital expenditure cycle; the resultant heavy free cash flow should be allocated to dividends over the next few years.
From Bernard Horn (Trades, Portfolio)'s second-quarter 2019 Polaris Global Value Fund shareholder letter.
