Investment Strategy
Investment Objective
The Program seeks to provide long-term capital growth and income by acquiring interest in small private companies with strong cash flows or other attractive attributes. The Program will seek to invest at least 80% of net assets in small private companies. In this situation, a small company is defined as having revenues with less than $30 million. Market capitalization, a common metrics to determine a company’s size, is not a requirement when selecting to invest in a company given the private nature of the transactions. The Program will also attempt to hold less than 10% in cash or cash equivalents; however, the Manager may temporary remove this policy for defensives purposes (See “Reserve Position”).
What are some of the Program’s Potential Rewards?
Small and mid-size companies are often overlooked by the investment community and their securities may be undervalued, providing the potential for significant capital appreciation. Smaller companies may also have faster earnings growth than large, well-established companies, and value typically reflect earnings growth over time. The Program is designed for long-term investors who are willing to accept greater risks in search of substantial long-term rewards.