Genesee & Wyoming, Inc. (GWR, Financial), the leading short line railroad company, fell in the quarter as business slowed. Weak commodity prices hurt the company’s operations in Australia and soft coal and steel shipments are weighing on its domestic operations. The company made a significant acquisition of a rail company in the U.K., which we think fits well. The stock trades at a discount to historic valuation levels, and we believe its assets are very valuable and management is very skilled, so we expect the shares to perform better.
From Baron Funds’ second quarter 2015 commentary.
