Shares of Genesee & Wyoming, Inc. (GWR, Financial), a leading short-line railroad, declined in the second quarter, despite reporting robust volume and pricing trends after its transformational acquisition of competitor RailAmerica. The deal has been highly accretive given the low cost of financing and significant synergies. The combined entity makes Genesee the dominant regional operator in the U.S., adding revenue diversity and cementing barriers to entry. We see no fundamental reason for the decline. (Matt Weiss)
From Baron Funds’ second quarter 2013 commentary.
From Baron Funds’ second quarter 2013 commentary.
