Stanley Black & Decker, Inc. (SWK, Financial)'s shares did not perform well in the fourth quarter due to disappointing earnings results and an uncertain outlook. Management lowered its sales outlook primarily due to reduced expectations in emerging markets and Europe, where the company has above average exposure. We have chosen to exit our investment and reallocate the capital to higher conviction real estate-related companies.
From Baron Funds fourth quarter 2013 shareholder letter.
