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Exit Strategy

When we initiate a position, we intend to be long-term owners. Our expected holding period is at least 6 months to 3 years, but we will sell a position when: i) the market price appreciates close to our appraised intrinsic value; ii) there are more compelling competing investment opportunities; iii) the appraised value of the business is reduced due to a diminishment of the competitive advantages, poor management or erroneous analysis; or iv) disconfirming evidence negates investment theses due to internal or external changes. Portfolio must be rebalanced continuously, allocating capital from securities with inferior risk-reward to those more compellingly undervalued.