Credit: Shutterstock photoAs noted above, DreamWorks ( DWA ) (+60%; +5.0%), the film studio and multimedia company, was the FundAAAs largest holding and drove much of the return in the quarter, when Comcast announced an all cash acquisition for $41 per share. As our discipline dictates, we sold our stake when the price rose to our appraisal. DreamWorks was the kind of opportunity Southeastern hopes to findAAA a company with high quality, stable assets but volatile earnings being mispriced in a period when the market is rewarding companies with more predictable earnings and high dividend yields. We started buying DreamWorks in the third quarter of 2014 at $19 following disappointing new movie releases. Our appraisal hinged on the valuable film library and DreamWorksAAA growing success in TV and web content as well as licensing. We partnered with a strong board and owner-operator CEO, who built the companyAAAs brands, developed a presence in China, managed costs, and ultimately monetized the company at full value.
Warning! GuruFocus has detected 7 Warning Signs with DWA. Click here to check it out.
From Southeastern Asset Management's Small-Cap Fund Commentary.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
