Investment Lifecycle and Strategies

INVESTMENT PHILOSOPHY KEEP THINGS SIMPLE - RATIONALITY & COMMON SENSE CAN GO A LONG WAY • . • • We believe the simpler the thesis, the better. More complicated investments do not equate to higher returns. It seems the investment industry has gotten overly-complicated with enormous spreadsheets and back-tested quantitative models. Over-reliance upon these "tools" often results in a false sense of precision, with more time wasted "data-crunching" and less time thinking. This often results in sub-par returns. We don't sweat over whether a business is going to earn $5 or $5.25 next quarter. We simply try to focus on finding big gaps between the current price and a conservative estimate of intrinsic value, and are always on the look out for that “fat” opportunity. CONCENTRATE OUR CAPITAL IN THE BEST IDEAS • • There are few "high-quality" businesses and management teams in the market - there are even fewer available at favorable prices. Fiercely competitive markets combined with finite resources makes it rare to find attractive investments. Because exceptional opportunities are rare, we want to make meaningful investments when such opportunities are present. We typically invest in 6 – 15 names at any given time. HAYDEN CAPITAL 7

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