Investment Strategy

We are a research intensive, deep value-oriented, long/ short investment manager with a focus on special situations and more complex small and mid-capitalization securities. Our investment objective is to consistently generate attractive, uncorrelated absolute returns in order to achieve long-term capital appreciation while minimizing the risk of capital loss. This is achieved by purchasing securities that have trading prices significantly lower than their intrinsic value and by selling short securities that have trading prices significantly higher than their intrinsic value.

We do not focus on any particular industry, sector or geographic region, but apply a generalist strategy to investing that enables us to identify attractive opportunities across various sectors and markets. Our investment selection process starts from the bottom up, by evaluating each individual position based on its own merits.

As the steward of our partners’ capital, we mitigate risk by: 1) focusing on segments of the market in which we have expertise; 2) conducting extensive research; 3) holding primarily liquid securities; 4) employing position size limits; and 5) using limited or no leverage.

The accumulation of capital depends on repeated successes with risk controls over an
extended period.