SRC CAPITAL MANAGEMENT

Investment Philosophy

• Invest in under-owned, under-followed stocks trading at significant discounts to their intrinsic values and the S&P MidCap Value benchmark
• Invest in quality companies offering attractive three-five year risk-adjusted returns
• A bottom-up, research-driven process to generate consistent performance results
• Commitment to client service is equally important to investment performance

Investment Process

• Screen for stocks trading at a discount to their respective industries and market multiple
• Management intensive focus driven by strong fundamentals
• Build a diversified portfolio of high quality stocks with above-average risked-adjusted returns over a full market cycle
• Monitor portfolio to ensure efficient diversification relative to the S&P Mid-Cap Value Index
• Reduce risk to enhance probability of investment success