BCM employs a long-term, bottom-up investment approach, focused on business fundamentals and capital structure appraisal. We believe preserving capital in all market environments is paramount in generating outsized returns over time. We believe that our approach, focusing on businesses that exhibit economic resiliency, rarely employing leverage, and effectively utilizing short positions as investments, exposes investors to less risk than the market. We believe a portfolio concentrated in great business at very good prices decreases risk by reducing the portfolios exposure to the inherent risks associated with average to bad businesses. These businesses often exhibit lower margins, slower growth, less pricing power, and generally higher degrees of leverage, thus increasing business risk. Our disciplined portfolio management strategy identifies core investments both long and short, maintaining a long-term time horizon and low portfolio turnover, while seeking to generate high after-tax returns. Our ability to assess a business's intrinsic value in combination with the many risks both specific to the company and the market, creates substantial margins of safety and opportunity for long-term capital appreciation. The Managers believe transaction costs and tax obligations to partners will be low as compared to equity funds with shorter time horizons and higher portfolio turnover. As a rule, we believe portfolio leverage can cause inverse behavior due to natural short-term price fluctuations. This substantially increases volatility and risk of permanent loss of partner capital. We are strong believers in investing without leverage. The Fund intends to be invested 85% gross long and 15% gross short on average equating to a 70% net long exposure over time.