Investment Objective
Our objective is long-term growth of principal by targeting companies that we believe can appreciate 50% over a 3-year time horizon.  We do this with an emphasis on downside protection by selecting high-quality companies while avoiding those that are more speculative.

Strategy
The Small Capitalization Value Strategy invests in 40-55 companies that, in our opinion, exhibit a set of high quality characteristics.  These characteristics include differentiated and sustainable products or services, above average free cash flow, below average financial leverage, and a management team with a strong track record of both operational execution and capital allocation.  We look to buy these businesses when they are trading at a discount to our estimate of their intrinsic value.  This is achieved through a bottom-up portfolio construction process based on intensive, fundamental research and valuation analysis while incorporating a view of the macro factors.  This process is implemented using a proven team-based approach.