Investment Objective

Our goal in the TIM Microcap portfolios is to provide superior risk-adjusted returns and long-term capital appreciation and to outperform relative benchmarks such as the Russell Microcap Index over a full market cycle (typically 3-5 years).

Philosophy

• Fundamental and research driven approach to investing in micro-cap companies that have market caps greater than $10 million.
• Team oriented investment decision-making process encompassing in-house research
• Identify catalysts for secular and fundamental change
• Companies that exhibit: sustainable business models, superior managements and substantial increases in discretionary free cash flow
• Attractive valuations based on discounted cash flow analysis

Portfolio Structure

• Diversified portfolio of generally 60 to 100 securities
• Minimum market cap of $10 million; maximum market cap $300 million (at time of purchase)
• Broadly diversified by industry and sector
• Turnover range typically 50-80%
• Generally fully invested