OBJECTIVE

The firm's founding strategy seeks to compound capital by exploiting inefficiencies between price and value that are most prevalent among smaller capitalization companies. Our studies identified a sweet spot among middle market companies where inefficiencies exist but many of the risks associated with small cap companies did not. The firm's bottom-up, value approach seeks to deliver steady, high returns over time at below market risk levels while protecting capital in weak markets.

Our investment universe concentrates on companies above $1.5 billion and excludes the 100 largest domestic companies. The strategy will hold 35 to 55 stocks and will provide reasonable diversification across industries and sectors, however, exposures will deviate from the market indexes. Cash is not used to time the market, but is a residual of the bottom-up process. 0% to 10% cash should be expected.

Q2 2008
Mid Cap Value
Fact Sheet and Commentary