Europe, Ltd.

Fund Investment Objectives

Cambrian Europe is a long-only fund that invests in European publicly traded equity securities, centrating capital and research on five to six investments at any given time. The fund seeks to achieve capital appreciation through long investments in undervalued companies, which are temporarily out-of favor and are candidates for an earnings turnaround, restructuring or takeover. The investment team focuses its research on approximately 250 high-quality mid-cap industrial, consumer and business service franchises with market capitializations between $1 billion and $30 billion. Our approach to corporate valuation utilizes a bottom up approach to analyzing cash flow and earnings potential and we use constructive shareholder activism, where appropriate. The fund does not invest in options or futures. Monthly volatility may be above equity market volatility, though upside volatility has historically been significantly greater than downside volatility. Generally, the fund avoids leverage and typically has a long exposure range of 70%-100%.