Freight transportation management company Hub Group, Inc. (HUBG) declined after it reported weak third quarter earnings. The company also lowered guidance for the remainder of the year due to poor service levels from its rail partners, as well as a legal settlement with drayage drivers in California. We believe rail service levels should begin to improve in 2015 as railroads are currently making investments to add additional capacity.
From Diamond Hill Capital (Trades, Portfolio)’s Select Fund Q4 2014 Commentary.
