Victor Smith

Beekman Capital Management Ltd. ('BCM') is an aggressive growth equity manager whose objective is to provide superior returns. We look for top quality, highly focused industry leading companies that have a 'growth dynamic,' that is, the ability to generate high, consistent and substantial revenue, product unit and earnings in excess of 15% for the next three years, having previously done so for six or more consecutive quarters. Beekman conducts various screens of 10,000 North American companies to identify potential investments that meet base level financial parameters. The fundamental analyses are performed in-house with limited use of Wall Street sources. Each potential company is subjected to a fundamental review to verify that its growth is genuine and likely to persist for a protracted length of time. They undertake early and frequent contacts with company managements to encourage them to articulate their business plans, directions, goals and financial milestones. This is done to develop confidence in the company's prospects and the abilities of its management, and provide a consistent framework for ongoing reviews. Strong financial controls must be in place. They prefer a low/no debt balance sheet with a high ROE and strong operating margins. Positive price momentum is a supporting technical indicator. Once an investment idea is approved, it must also compare favorably with existing portfolio holdings. All investments must consistently and continuously exhibit strong operating and financial performance. Investment positions are established gradually at levels for 1% to 3% of the total portfolio's value. Portfolios may be concentrated by sector or industry. However, this is a result of their emphasis on a growth dynamic rather than the result of any top-down secular view. They apply investment judgment to dampen volatility and achieve portfolio diversification. A portion of Beekman's portfolio may be held in cash, if permitted by client objectives, when the market environment is unfavorable and the firm finds that attractive growth companies are too richly valued. Their targeted companies provide leading edge products and services and have superior managements. A small portion of the portfolio can be invested in special situation or companies that do not meet the full investment criteria. These companies must, however, have leading edge technology or be introducing important and potentially dominant products or services. Portfolio construction is strictly on a stock-by-stock basis. The process involves reacting very quickly to significant or persistent changes in fundamentals. Beekman generally invests in equities whose p/e ratios are less than twice its expected growth rate. Investments are eliminated when the milestones and goals established by a company's own management and Beekman's analysts are not being met, and the company ceases to exhibit an exceptional record of financial accomplishment and product/service dominance or when the firm believes that an alternative investment offers significantly greater potential return. Negative price action will cause them to reduce the position.

Simms Capital Management (SCM) is a growth manager that invests in high quality growth stocks with sustainable earnings growth. The firm looks for companies with relatively high returns on equity and high earnings growth rates, rather than companies or industries with predominantly cyclical characteristics. SCM only invests in companies with expected positive earnings. SCM's global proprietary stock selection uses quantitative screens to identify companies that fit their growth criteria and strategy. The firm applies a bottom-up stock selection process that first identifies companies based on quantitative measures and fundamentals, without regard to global borders and currencies. SCM's proprietary three-step investment process is a series of eleven valuation disciplines and screens that rank securities from a database of 6,600 global equity securities. The modeling process uses quantitative factors such as a dividend discount model, earnings momentum, liquidity and the demand and supply of shares. The ranking procedure produces an overall score for each security and a list of 130 or more most attractive securities. Fundamental analysis is then applied to the most attractive securities to create the portfolio. Each component of the selection process is assigned a decile ranking and is combined in the quantitative screening model to create an overall score for each security. This weekly process produces the universe of the 130 or more most attractive securities. After the universe is identified, SCM applies rigorous fundamental analysis. Though not limited to any particular sector or market-cap, the firm tends to invest in the stocks of large-cap companies in the electronic technology, technology services and finance sectors. SCM maintains a medium turnover rate.