Control Risk Assumption

Our experience has shown that a key element of successful investment management is the avoidance of undue risk assumption. Generally, high-risk stocks, where unsuccessful, will decline precipitously and thus substantially offset the successful investments within a portfolio. The most recent examples are not only the "dot.com" companies but also the telecommunication companies.
Generally, to limit risk assumption, there are two aspects that are adopted:

-Undiscovered Companies
Undiscovered companies are stocks which have a limited amount of investment research coverage by the investment community. Such limited coverage will result in a low valuation for the company's stocks primarily due to a lack of awareness and thus less demand by the investment management community.

-Contrarian Investing
Contrarian investing is looking at industries and companies, which are considered not especially attractive by the majority of investment research houses at any particular time. Because most of the potential company investments in this category will have low valuations, there can be numerous opportunities.

In an attempt to control risk assumption, we believe a disciplined approach should be employed.