At 30 June 2015 we had 3.0% of the Portfolio invested in AAD.
Ardent was something of a market darling and in October 2014 its stock was over $3.00 per share. First half earnings were quite disappointing, driven by negative comparable sales in Ardent’s Health Club business. At around this time, there was a change in CEO, which the market did not take kindly to, selling down Ardent’s stock to around $2.00 per share.
We think this is something of a mean reversion story for a few reasons: [Read more…]