Core strategy = discount to private market value

• Focus on public businesses trading at significant discounts to private market value (i.e., if business were sold) as estimated ~5 years out

• While multi-year holding periods are assumed for most investments made, we remain flexible and might hold for a much shorter period; especially true of our short-term event-driven investments with many resolving in a matter of months, weeks, or days

Focused on reducing risk of long-term permanent losses, not short-term quotational losses

• Short-term price movements are an advantage; the greater the undervaluation relative to our estimates, the higher the expected return

• Maintain and constantly update private market valuation appraisals on a few hundred public companies but ultimately market fluctuations dictate when each company’s stock reaches a significantly undervalued level relative to that estimate (if ever)

Highly selective and therefore concentrated in best ideas

• Portfolio is heavily concentrated in best ideas available - much less diversified than the average investment firm

• Typically fewer than 15 investments and often less than 10; willing to concentrate in less than 5 investments under the right conditions

Unconstrained – invest wherever highest estimated return exists

• No restrictions by company size, industry, geography, etc.

• Many investments are outside the U.S. and/or in smaller, less-followed, and often illiquidly-traded companies

• No restriction approach allows for research across many companies, increasing likelihood of finding a few new/better investments each year

• Since highly undervalued opportunities often exist in the most ignored/misunderstood companies, our investments often appear unconventional