Our equity strategy seeks to identify stocks with good growth prospects trading at reasonable valuations relative to their peers and leading companies trading at discounts to their intrinsic values with catalysts for valuation change. We primarily invest in mid and large-cap companies. In addition to owning companies across all sectors to provide broad equity market exposure, we seek incremental excess return in specific stocks and sectors that we believe may be positioned for above market appreciation. These investments act as growth options around our core investment holdings and are designed to help us achieve positive risk-adjusted returns.

We seek to manage portfolio turnover, focusing on after-tax, net returns, and avoiding the "Achilles heel" of certain mutual fund and managed products. Typically, our portfolios are diversified, consisting generally of 35-50 positions.

Value Opportunity
Our Value Opportunity strategy targets primarily stocks that we believe are positioned to appreciate faster than the aggregate market. Mindful of our value-bias, we seek to identify companies, which we perceive to be misunderstood by the broader market and positioned to benefit from a transformation such as restructuring, a changing macro, competitive or regulatory environment, a breakthrough product offering, or industry consolidation. In addition to value-oriented core holdings, positions will include foreign issues and small and mid-size companies.

In addition to stock investing, the strategy may pursue opportunities in debt securities and in funds that may hold investments other than common stock.

Equity Income
Our Equity Income strategy selects blue-chip and value-oriented stocks (and some bonds) of companies with proven management teams, solid dividend yields with the potential to increase payouts, and operating businesses that generate dependable cash flows. In addition, we seek to complement the "blue-chip core" by investing in a variety of securities that may be trading at steep discounts to relative or intrinsic metrics and provide both growth and income opportunities.

Targeted investment securities include common and preferred stock, debt securities of companies, governments and their agencies and funds that may allow us to participate in convertible equity, debt and other income producing investments. Generally, our portfolio maintains 60-80% equity bias and we limit the purchase of debt securities to investment grade obligations.