We are value investors and accordingly look for basic industry stability and a company with a meaningful and defensible market share in a large niche market. Our interest runs to high value added industrial manufacturing businesses and service businesses with a franchise value. We have not yet seen a perfect business and are willing to pursue investment opportunities where there is clear room for improvement through our ownership process.

Often our investments are in established industries with modest growth, sometimes with moderate cyclicality. As a result, we are attracted to businesses where business growth and equity value creation can come from strong execution, e.g. introducing new products, expanding into new geographical regions, and enhancing the sales efforts or channels, as well as carefully selected and complementary acquisitions.

We are opportunistic and generalist investors but our experience, deal flow, and executive affiliate network combine to create some categories of special interest, as follows:

• Companies that design, market, manufacture, assemble, or distribute high value added products, systems or components

• Companies that provide business services including specialized information, financial, and marketing services

• Companies that develop processes and systems which lower costs, provide superior service and facilitate energy and utility management

• Well-established niche publications serving narrow market segments