Corsair

Fund Investment Objectives

Corsair Capital invests with a long bias focused primarily on mid-cap and small-cap companies. We pursue those with proven management and strong performance incentives, positive and growing cash flow, and solid balance sheets with limited leverage. Critical to our strategy is identifying a catalyst or inflection point in revenue or earnings that will unlock value. We have had success finding these opportunities among companies going through change (e.g. spin-offs, post re-org equities, management restructuring, etc.). They often have little or no analyst coverage and a complicated financial story. There is potentially great reward for investing the time to understand the details of the financial picture, the business model, the reputations and intentions of management, and the prospects for the business going forward. We do this work - using fundamental analysis, original research, and a consistent investment process that has guided our activity since 1991. The fund uses no leverage and typically maintains gross market exposures of 60%-85% long and 5%-10% short. The top 20-25 positions in this broadly diversified portfolio generally represent about 50% of capital. One quarter of Corsair's assets under management belong to the principals and their families. Payout: 90% is paid out within 30 days and the balance after completion of the audit. Performance is calculated using a 1.00% management fee through May 2002 and a 1.25% fee from May 2002 through 2009, each of which was the highest rate at the time. Commencing 2010 performance is calculated using a 1.5% mgmt fee, the current highest rate.