Investment Philosophy Our investment philosophy is to hold quality companies for the long term. Our Beliefs Our Approach Active management works in small caps The alpha is in stock picking, not asset allocation Quality outperforms in the long term Long-term investment works particularly well in small caps Stock focus, quality criteria and a longer holding period Low risk approach to the asset class – seeking above benchmark returns for below benchmark risk Low portfolio turnover Clear straightforward strategy Focus on real returns, not relative Invest in companies, not stocks High conviction, low turnover Benchmark unaware approach Return hurdle is 50% upside over three years 15% p.a. We conduct proprietary, fundamentally driven bottom up research Target 5%-10% above the Benchmark1 over 3 year time horizon The primary risks we manage are those specific to the companies we own 1. Benchmark is S&P/ASX Small Ordinaries Accumulation Index.