AVERSION TO LEVERAGE We avoid the use of leverage. As a result, we are never forced to sell when market conditions are difficult (and stocks are undervalued). OUR BEST IDEAS Only our best ideas find their way into the Value Fund. The size of our individual stock positions varies depending on our level of conviction and we aim to hold roughly 16 stocks in the portfolio. The benefits of further diversification make sense for some, but we prefer to assume some shorter term volatility in exchange for what we expect will be longer-term outperformance. HOW WE VIEW RISK At GreensKeeper we reject the Efficient Market Hypothesis and the premise that volatility is the proper way to define and measure risk. Instead we take the view that risk is best defined as the risk of a permanent loss of our clients’ capital.