Toy manufacturer Mattel (NASDAQ:MAT) sliced 45 basis points from the Fund’s return, as its stock slid 7.7% from $13.00 to our selling price of $12.00. In April, the company recalled all models of its Fisher-Price Rock n’ Play sleepers, after the product was linked to over 30 infant deaths. This safety failure exposed key lapses in the company’s enterprise risk management systems and their tragic, real-world consequences. Given the risks of further reputational damage to the company’s brands amid ongoing product liability lawsuits, we sold all our shares.
From Jerome Dodson (Trades, Portfolio)'s second-quarter 2019 Endeavor Fund shareholder letter.
