DETTA INLÄGG ÄR ETT UTDRAG UR KVARTALSBREVET JAG SKICKADE TILL PANDIUMS ANDELSÄGARE 29 APRIL 2016.
I mentioned our investment in WLRH in the Q4 2014 letter. I said that it was a heads we win, tails we don’t lose situation. We didn’t lose. In March it was announced that WLRH would acquire Nexeo, a chemicals and plastic distributor. The market’s reaction was muted and the stock stayed at 10 USD per share (the minimum redemption price for those wishing not to participate in the acquisition.) After reviewing it I concluded that the stock was correctly priced and sold it. We got a 1.5% return for the holding period, which being the worst case is not bad. We made an additional 6% on the currency but that was pure luck.