The Company is primarily a risk adjusted long and short investor on U.S. and foreign equity markets; funds focused on stocks, forex and derivatives such as options and early adoption crypto positions.

The Company's focus is zeroing in opportunities across assets that provide the most effective and profitable time periods through a multi-faceted time-tested approach.

The Company's goal is to generate outstanding returns on a rolling 24–36-month time horizon through the use of fundamental research across multiple industry sectors in order to generate an edge of insight or factual information. Once such information is obtained, the Company will determine if the information will put a company or an industry in a position to achieve success. Companies showing strong attributes will be considered for investment.

Depending on the market environment, the Company's portfolio may be hedged at times using short sales of stocks and other derivative securities. 

INVESTMENT APPROACH OF THE

INVESTMENT MANAGER

IDEA GENERATION:

The Investment Manager uses many factors to determine which investments should be considered for further research. In a broad equity market, it is of paramount importance to be able to screen for ideas in a disciplined and efficient manner. A thorough filtering process allows the Investment Manager to focus on what is relevant.

In essence, the Investment Manager's process is predicated on having a high success rate on a small set of investments rather than attempting to form an opinion on too large a universe.

Accordingly, idea generation is critical and relies on the following sources: company meetings, conferences, experienced peers, survey work, qualitative screens, periodicals, extensive network of contacts, the Company's investors and Wall Street reports. 

FUNDAMENTAL RESEARCH:

 Once an idea has been generated, rigorous analysis will be performed to uncover the facts that will lead to an investment decision. Facts and insights are ascertained through the following:

Company Management – The Investment Manager meets with company management to better understand its strategy and to judge the ability and integrity of the people running the business. The Investment Manager interacts with management on company visits, conference calls and industry conferences. Frequent contact with management helps an astute investor notice changes and trends that drive business dynamics.

Financial Statement Analysis — Historical analysis of a company's income statements and cash flow statements reveals the levels of and trends in corporate profitability. Depending on the company and industry, different variables will be of greater or lesser significance. For companies with high growth rates in revenues and earnings, which the Investment Manager believes usually provides superior investment returns, margin trends and predictability of earnings are critical. With more mature companies, cash flow analysis and asset valuation become more important. By analyzing a company's cost structure and margin trends, a better understanding of a company's market position is obtained. 

The balance sheet is analyzed to uncover a company's current financial position. Levels of cash, debt, and book value are also reviewed. Trends in balance sheet accounts such as cash, inventories and accounts receivable are also scrutinized for deterioration and/or improvement.

Industry Analysis – The success or failure of most companies has a direct correlation to the industry in which they operate. Detailed understanding of industry and secular change is an important part of the Investment Manager's investment process. Some of these insights may be gained through company management. However, the Investment Manager also uses more unbiased methods to complete the industry mosaic. Outside industry consultants and Wall Street industry analysts are a good source of facts and can provide an understanding of secular trends. The Investment Manager monitors industries that supply and buy products from the industry being researched. In many instances, the Investment Manager may uncover clues to the future health of an industry by noticing inflection points in its complementary industries.

Competitors — Competitors are analyzed and contacted in order to substantiate previous facts that were gathered. Competitors will provide insight into the target company's strengths and weaknesses. They will also help highlight different strategies and potential risks to the target company.

Suppliers and Customers – Suppliers and customers are analyzed and contacted for further affirmation of the target company's business trends. Constant monitoring of both will lead to insights about the company under analysis before such information about the company becomes widely known. 

QUALITATIVE RESEARCH:

 Once all the facts have been gathered, the Investment Manager will evaluate an investment by its risk and reward over a specific time frame. The risk to reward profile is generally determined through an edge in information or insight.

Informational edge is fact-based and is generated during the fundamental research process.

An edge of insight is more qualitative and comes in many forms. Some examples include:

• a product cycle being bigger or longer than others realize

• a company having a competitive advantage not well understood by the market

• an industry or company going through a cyclical downswing that eventually recovers because that industry has a necessary function in the U.S. economy

• a company having a profitability profile that is likely to be permanently altered due to structural changes in its business.

The edge of information and insight are then placed within a valuation framework to determine the potential gain and risk. Various valuation techniques are used; however, the Company's primary valuation techniques are cash-based methods, as the Investment Manager believes that strong cash generation leads to increased shareholder value and strong stock performance.

RISK MANAGEMENT:

While the Company will generally be a long investor with a portfolio, at times the Investment Manager may find it prudent to use various techniques to reduce risk by hedging individual positions and/or portfolio characteristics. This may be accomplished using long and short positions in derivative securities.

SECULAR TRENDS:

Trend analysis starts with a review of basic data which is obtained through a variety of sources. These include government statistics, Federal Reserve bulletins, various periodicals, trade journals, and newspapers. Information is also gathered from the hundreds of companies that are contacted each year. The Investment Manager has direct access to Wall Street analysts, industry experts and economists, and it will utilize a network of contacts from a variety of investment organizations. 

HEDGING:

Depending on market conditions, the Company's portfolio may at times be hedged through use of derivative instruments.

PORTFOLIO COMPOSITION:

The Investment Manager will apply no arbitrary criteria with respect to the size, sector or class of the investment in which it will invest. To the extent that significant mispricing between fundamental values and market prices may from time to time be greater in small to medium sized companies (i.e., in "secondary stocks"), or in troubled or "distressed" companies, the Company's portfolio may at times be invested primarily in the securities of such companies.

At other times the Company's portfolio may be concentrated in "large capitalization" stocks (i.e., securities of large companies with significant institutional sponsorship).

Although the Company's portfolio will consist primarily of 1 to 20 common stocks (including common stocks of foreign companies), it may also contain futures, warrants to acquire common stocks, commodities, debt securities, or preferred securities of domestic and foreign companies that are convertible into common stocks.

The Company may also invest its capital in "restricted securities" (i.e., securities which must be registered under Federal or state securities laws before they may be re-sold) and other "special situations" investments (including currency situations and various "derivatives").

There will be no arbitrary or ideal "mix" of such investments, as the Investment Manager will endeavor to allocate the Company's capital among those opportunities believed to offer the most attractive risk adjusted potential returns, while always being responsive to changing market conditions. As the Company's objective is to achieve a high absolute return rather than a relative return, the Company may also invest in treasury securities and other cash equivalents when opportunities for "equity returns" appear to be limited.

The Investment Manager is authorized to invest in any situation if it believes that the profit opportunity is commensurate with the apparent risk presented by the investment, and from time to time the Investment Manager may make investments involving greater risk than the risks perceived with respect to its primary investment thrust.

PORTFOLIO TURNOVER:

As the Company is an opportunistic investor, its portfolio turnover may be significant and its transaction costs (i.e., brokerage commissions) as a percentage of its capital can be correspondingly significant. 

LEVERAGE:

The Company may use leverage in its investment program, as deemed appropriate by the Investment Manager and subject to applicable regulations. While the amount of leverage will vary, it will generally be limited to 150% long exposure measured at the time of investment.