During the quarter, the fund outperformed its benchmark.Takeover activity boosted returns. The holding in MedImmune was a major contributor, as AstraZeneca acquired this biotechnology company at a premium. Payment services firm First Data Corporation, bought out by a private equity fund, also aided returns.A holding in Monsanto buoyed returns due to an increase in corn planting in the US to cater to ethanol production. Shares in the agricultural firm rose to a record high, as an increase in sales of its corn seeds led to a 71% rise in third-quarter profits from a year ago.Google also contributed, given its robust quarterly results and the encouraging prospects for the internet search market.Conversely, exposure to retailers detracted, in light of falling sales and concerns about a slowdown in consumer spending.An overweight in Sears hurt returns, but the fund manager feels that the management of the retail chain can efficiently use the strong cash flow for opportune investments.