INVESTMENT PHILOSOPHY

The firm is named "Trinsic Capital®" because our investment strategy is based on the search for intrinsic value. We use computer screens and financial statement analysis to find stocks that are trading at a discount to their intrinsic value. When we select mutual funds for a client's portfolio, we look for managers that share the same philosophy.

Our "sell" philosophy mirrors our "buy" philosophy. We sell a stock when we believe it has reached its full value.

The search for bargains often leads to small and mid-cap stocks. The market misprices these stocks more often than large cap stocks. In addition, small companies are more likely to be acquired at a premium by larger companies. Stocks of smaller companies are inherently more risky. We try to mitigate this risk by placing additional emphasis on companies with strong balance sheets.

We believe that part of our job as long-term investors is to ignore the constant noise that surrounds the stock market. We do not think it is a good idea to follow the investment advice of people who are really in the business of boosting TV ratings and selling books.

The firm's approach is not a guarantee of success and may not work well in every kind of market environment. We believe it is a sound approach because it is based on fundamental financial analysis, rather than forecasts about the direction of the market or the economy, which often prove to be unreliable.