RIM Opportunity Strategy

Objective. The overall objective of the Opportunity Strategy is capital appreciation.

Investment Approach and Security Selection. This is purely a bottom up, fundamental, research driven approach. We look for opportunities in all market caps and focus on our high convictions, or “best ideas.” The portfolio is concentrated with 25 or less securities.

We seek to buy companies for a significant discount to their intrinsic business value and prefer companies exhibiting a durable competitive advantage in their industry with a history of stable and increasing earnings and cash flow. We also like companies run by their founders and if not, a strong management team. Ideally management will also will own a significant amount of the stock.

Portfolio Construction and Concentration. Security selection is determined by best opportunity and may have significant weight in one industry and may not include all industries. We also will only invest in businesses within our core-competence and businesses we believe we can understand. Our ideal holding period is forever but we will sell a security if we believe it is currently fully valued or to invest in another security which we believe presents a better opportunity.

While we seek to be fully invested, we will wait for the “fat pitch” and sit on cash if necessary if we are unable to find other opportunities to invest the capital. During this time we may invest in short-term treasury securities or other fixed income securities as a place holder.