The following segment was excerpted from this fund letter.
One tenet of our Value with a Catalyst strategy revolves around the situation when a change in the shareholder base causes uneconomic sellers to depress the valuation of a good business. A halted sales process in Cars.com (CARS) created this dynamic in the third quarter. We used the opportunity to invest in the auto sales platform business at an attractive valuation, ahead of several medium-term catalysts. We believe there are four ways to win with Cars.com.
First, there is confusion over affiliate conversions from wholesale