Sanrio Co. Ltd. (TSE:8136, Financial) is a Japanese company that owns the iconic brand, Hello Kitty, among others. Sanrio has enjoyed impressive sales and profit growth in Europe, and in 2013 it shifted focus to North America, hoping to replicate its success in Europe. Sanrio's share price more than doubled by third quarter year-to-date, as Sanrio showed traction in North America, but it gave back a portion of this gain in the fourth quarter as the rally in Japanese stocks lost traction. We believe Sanrio's new management and focus on licensing will allow it to grow while maintaining attractive profits and returns. (Kyuhey August)
From Baron Funds fourth quarter 2013 shareholder letter.
