Alaris Royalty Corp. (TSX:AD, Financial) is a unique specialty finance company that provides passive mezzanine capital to private companies. Alaris acts as a financial partner to these companies, earning a diversified stream of preferred dividends and providing attractive yields on investment. The company's shares declined in the fourth quarter as one of its investments was compromised due to poor operating performance. While disappointed, we remain comfortable with our position as the investment represented only 3% of Alaris' total assets and dividend payments will not be impacted. (Aaron Wasserman)
From Baron Funds fourth quarter 2013 shareholder letter.
