Q: I see that you sold 100% of your position in BRP in your model Growth Portfolio in October. I recognize that it is a cyclical company and having a rough patch right now, but in the past it has managed well through its cycles an prospered. I believe it is a quality company and I'm wondering why you sold it rather than riding it out with them? Thanks very much.
5i Research Answer:
It is true that DOO has historically managed to come through industry cycles well in the past. That being said, the timing of when DOO will recover, as well as the duration of the downturn, is highly uncertain. We think DOO will do just fine from this downturn, but we like businesses that are demonstrating solid momentum rather than the ones that are in turnaround situations, we think there are simply better opportunities out there with a higher chance of achieving attractive forward returns.