European Strategy

The European Equity Fund was launched in 1998 and has been managed by David Craigen since July 2012. The European Equity Fund targets an 8% return in a flat market, to preserve capital in a down market (with an annual loss tolerance of 10-15%) and to capture a significant portion of the upside in a rising market, with 8-12% target volatility. The investment strategy is focused on situations that clearly offer significant value creation through a detailed and comprehensive analysis of the cash dynamics of the business. Equity exposure to European companies will normally be a minimum of 65% of net equity investments.

The European Long Only Fund, managed by Steven Heinz and Daniel Avigad, launched in January 2005. The net exposure range is 60% to 130%, allowing between 40% cash and 30% leverage. Equity exposure to European companies will normally be a minimum of 65% of net equity investments.

The Europa Fund, managed by Steven Heinz and Daniel Avigad and launched in June 2012, is essentially a replica of the European Long Only Fund, but does not utilize leverage or borrowing. Further the Europa Fund does not invest in any options, derivatives or CDS instruments. The net exposure range is 60-100%, allowing up to 40% cash. Equity exposure to European companies will normally be a minimum of 65% of net equity investments, but is typically expected to range between 80-90%.