Profile

• Founded 2006
• Headquartered in Temecula California
• Product offerings:
  - Global Equity Separate Accounts

Strengths

• Independent, employee-owned
• Over 20 years industry experience
• Tested global investing experience
• Proven knowledge of Value Investing
• Consistency of style
• Predetermined limit to assets under management
• Predetermined optimal number of stocks in client portfolios
• Management investing completely aligned with client portfolios

Minimum Account Size

• $1 million (preferred)

Investment Philosophy

• Value Investing
• Global Perspective
• Fully Invested

Investment Process

• Long-term
• Bottom-up
• Fundamental business-specific analysis
• Realistic historical perspective
• Stocks purchased at significant discounts so that return is optimized while risk is minimized

Portfolio Characteristics

• Concentrated (Typically 30-35 holdings)
• Low turnover (Holding period typically 4-6 years)
• Diversification parameters – At the time of purchase, generally no more than:
  • 5% maximum per security
  • 20% per country and industry, or
  • 150% of Index weighting
  • 20% in emerging markets
• No currency hedging

Stock Characteristics

• Mid-to-Large Capitalization
• Deep pessimism in the press about their prospects for the future
• Understandable financial statements
• Low price/earnings ratios
• High level of assets supporting the valuation
• Strong balance sheet