March 2014 Commentary – Owner-Operators

Our investment process is focused on identifying companies with the potential to create shareholder value over an extended investment horizon. One of the most compelling predictive attributes for outperformance is owner-operator management, where a principal or owner (frequently a founder) is directly involved in the management of a company AND has a significant portion of his or her wealth invested in the equity of the business. In this white paper, we introduce the owner-operator concept, providing historical context as well as data supporting our view that such companies are likely to outperform agent-managed companies over the long term.

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September 2013 Commentary – Liquidations

Liquidations are an extremely interesting type of investment, but they are incredibly rare, and require an extended investment horizon. Therefore, they are of little interest to the majority of investors. The timing of the payout, if any, is unpredictable. However, if and when it comes, it may handsomely reward the investor’s patience. This month’s commentary reviews some of the idiosyncrasies of investments in companies in liquidation, as well as provides an overview of a past liquidation investment made by the Firm.

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May 2013 Commentary – Long Product Lifecycle

Continuing our series on predictive attributes for outperformance, this month’s commentary highlights companies based on products with long lifecycles. Companies whose products have short lifecycles face pressure to regularly reinvent themselves; otherwise, they are likely to experience decreasing market share or profitability as demand for their products wanes. In general, companies whose products have long product lifecycles enjoy more consistent demand, leading to more predictable long-term results.

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March 2013 Commentary – Scalability

We discuss scalability as a predictive attribute for outperformance, highlighting publicly-traded private equity firms as example of companies with operating leverage in their business models.

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February 2013 Commentary – Bits & Pieces

Highlights companies with significant investments in other publicly-traded companies, including Dundee Corporation (DC\A CN), Icahn Enterprises L.P. (IEP), and Brookfield Asset Management (BAM).

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September 2012 Commentary – Spin-Offs

In the past several months, we have noticed increased spin-off activity in the equity markets. We have published research reports monitoring spin-offs for many years, including a 1996 study examining the long-term returns provided by tax-free spin-offs as compared to the broader market returns. This month, we highlight some notable spin-off transactions from the past several quarters, as well as discuss selected pending spin-offs.

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